What is SWP?

A Systematic Withdrawal Plan (SWP) is a financial strategy that allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals. You can withdraw a fixed amount on a pre-decided date every month, quarter, or year. With SWPs, you make partial withdrawals periodically instead of redeeming a lumpsum amount. The remaining balance stays invested in the scheme, continuing to earn returns over time.

Using the above SWP calculator, you can calculate the cash flows from your SWP transactions over your required time period and based on your accumulated corpus to support your lifestyle post-retirement.

What is an SWP calculator?

An SWP (Systematic Withdrawal Plan) calculator or SWP calculator is an essential financial tool that helps investors plan regular withdrawals from mutual fund investments. It helps in planning out a regular income stream while keeping the initial corpus invested.

You can also use the calculator to modify your withdrawal plans based on market conditions, ensuring you don’t deplete your corpus too soon. Additionally, it provides a picture of how compounding returns might impact the remaining investment, helping you make informed financial decisions. It helps determine the appropriate rate of withdrawal which will help generate the required cash flow without the risk of depleting your corpus too soon.

How does an SWP return calculator work?

The working of this calculator is based on the inputs provided, which typically involve the initial lumpsum investment amount, investment duration, expected rate of return, desired withdrawal amount, and withdrawal frequency. The online calculator uses these details to determine the potential capital appreciation over time and the duration for which you can withdraw the specific amount. This allows you to plan your periodic withdrawals from the investment and evaluate if the investment strategy aligns with your financial goals.

How to use the Franklin Templeton SWP mutual fund calculator?

To use Franklin Templeton’s SWP mutual Fund calculator, you need to follow the below-mentioned steps:

• Step 1 – Input the amount you want to invest in a mutual fund.
• Step 2 – Input the amount you wish to withdraw and select the frequency of withdrawals. This is the fixed amount you plan to withdraw periodically.
• Step 3 – Specify the investment period in years. This represents the investment horizon over which you plan to withdraw your funds.
• Step no. 4 – Input the expected rate of return.

After entering these details, the online SWP mutual fund calculator will calculate and display the invested amount, withdrawn amount, estimated returns from your investment, and the estimated value of the balance corpus towards the end of the withdrawal period.

Example of the systematic withdrawal plan

An SWP in a mutual fund allows you to withdraw a fixed amount periodically, resulting in a stream of regular income. It is especially advantageous for retirees or those looking for a fixed income from their investments.

Assuming you invested a corpus of Rs 1 crore in a fund, and you withdraw Rs 50,000 at the end of each month for the next 5 years. You would have withdrawn a total of Rs 60 lakhs over 5 years.

The value of your balance corpus would be Rs 1,11,73,320 at the end of 5 years. The XIRR return considered is 8%.

Below is an illustration of the year-on-year value of your corpus:             

By using the SWP calculator, investors like Mr X can make informed decisions, adjusting withdrawal amounts, frequency, or fund selection to strike the right balance between potential income and longevity of investment.

This information is for illustrative / educational purpose only and should not be construed as investment advice. Past performance may or may not be sustained in future and is not a guarantee of any future returns.  

Past performance may or may not be sustained in future and is not a guarantee of any future returns. This information is for illustrative / educational purpose only and should not be construed as investment advice.

Past performance may or may not be sustained in future and is not a guarantee of any future returns. The information has been calculated as on June 2025. This information is for illustrative / educational purpose only and should not be construed as investment advice. The above investment simulation is based on an assumed rate of return of 8%, using Nifty 50 as the benchmark and Equity Fund as the category. This illustration aligns with the AMFI Best Practice Guidelines, as outlined in Circular No. 109 dated November 1, 2023, regarding the use of future return projections in non-scheme related materials. The above information is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Franklin Templeton Asset Management (India) Pvt. Ltd. is not guaranteeing or promising or forecasting any returns. SWP does not assure a profit or guarantee protection against loss in a declining market. The above SWP illustration alone are not sufficient and shouldn't be used for the development or implementation of an investment strategy. Franklin Templeton Asset Management (India) Pvt. Ltd. makes no warranty about the accuracy of the illustration. The examples do not purport to represent the performance of any security or Investments. In view of Individual nature of tax consequences, each Investor is advised to consult his/her own professional tax advisor.