How a SIP SWP plan works
A SIP (systematic investment plan) invests a fixed amount every month. Over 10, 15 or 20 years the units add up and grow. When you need income, a SWP (systematic withdrawal plan) redeems a fixed amount every month from the same corpus. The SIP SWP calculator joins the two: enter your SIP, its period, the monthly withdrawal you want afterwards and the withdrawal period.
The SIP formula
With each instalment invested at the start of the month, the value of a SIP after n months at a monthly rate i is FV = SIP × [((1 + i)n − 1) ÷ i] × (1 + i). ₹10,000 a month for 15 years at 12% builds about ₹50.5 lakh from ₹18 lakh invested.
From SIP to SWP: examples
SIPs for 15 years at 12%, then the largest level monthly SWP that lasts 20 years at 8%:
| Monthly SIP (15 yrs, 12%) | Corpus built | Max SWP for 20 yrs at 8% |
|---|---|---|
| ₹5,000 | ₹25,22,880 | ₹20,963 |
| ₹10,000 | ₹50,45,760 | ₹41,925 |
| ₹15,000 | ₹75,68,640 | ₹62,888 |
| ₹25,000 | ₹1,26,14,400 | ₹1,04,813 |
| ₹50,000 | ₹2,52,28,800 | ₹2,09,626 |
The SWP return is set lower than the SIP return in this table because many investors move to steadier funds once withdrawals begin. In the calculator, one return is used for both phases — run it twice if you want to test different rates.
Bridging the two phases
A sudden market fall just before withdrawals begin can hurt. Many planners shift the corpus gradually into debt or hybrid funds over the last three to five years of the SIP, then start the SWP from there.