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SWP Calculator

Calculate your monthly withdrawals from mutual funds through Systematic Withdrawal Plan while estimating remaining corpus.

Investment Details

₹1,000 ₹1,00,00,000
1 year 40 years
1% 30%

Withdrawal Options

₹100 ₹1,00,000

Results

Initial Investment ₹10,00,000
Monthly Withdrawal ₹10,000
Total Withdrawals ₹12,00,000
Final Corpus ₹9,85,000
Total Value (Withdrawn + Corpus) ₹21,85,000

Corpus Value Over Time

About Systematic Withdrawal Plan (SWP)

A Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows investors to withdraw a fixed or variable amount from their investment at regular intervals. It's an excellent way to generate regular income from your investments while keeping the remaining corpus invested.

Key Features:

Use this calculator to estimate how your investments will perform when you start withdrawing money regularly. You can choose between fixed amount withdrawals or percentage-based withdrawals that adjust with your corpus value.

SWP Calculator – Plan Monthly Withdrawals from Mutual Funds

A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals. Use our SWP calculator to estimate how long your investment will last, or what withdrawal amount you can take based on your returns.

Key Benefits of SWP:

Regular income stream Better than fixed deposits Tax-efficient withdrawals Flexible amount & frequency Potential for corpus growth No TDS deduction

Input Parameters:

  • Initial Investment: Lump sum amount invested
  • Monthly Withdrawal: Amount you wish to withdraw
  • Expected Return (%): Annualized return expectation
  • Duration or Goal Amount: Either specify time period or target corpus

Example Calculation

Initial Investment: ₹10,00,000
Monthly Withdrawal: ₹10,000
Expected Return: 10% p.a.
Result: Corpus lasts ~14 years (168 months)

With same parameters at 8% return: Corpus lasts ~12 years

FAQs

Is SWP taxable?

Yes, SWP withdrawals attract capital gains tax:

  • Equity Funds: 10% LTCG tax on gains above ₹1 lakh/year (after 1 year holding)
  • Debt Funds: STCG taxed as per income slab (if withdrawn before 3 years), 20% with indexation after 3 years
  • Hybrid Funds: Tax treatment depends on equity allocation

Each withdrawal is treated as partial redemption and taxed proportionately on gains.

Can I stop SWP anytime?

Yes, SWP offers complete flexibility:

  • Can pause or stop anytime without penalty
  • Can modify withdrawal amount or frequency
  • No lock-in period (except for ELSS funds)
  • Can restart stopped SWP with same or new parameters

Changes typically take effect from the next withdrawal cycle.

What's better - SWP or dividend option?

SWP is generally more advantageous:

Parameter SWP Dividend Option
Control Choose exact withdrawal amount Dependent on fund's dividend declaration
Taxation Only on actual gains withdrawn Taxable as income (over ₹5,000/year)
Consistency Fixed amount regardless of market Varies based on fund performance
Corpus Growth Remaining corpus continues growing No growth after dividend payout
How to choose funds for SWP?

Ideal SWP fund characteristics:

  • For stable income: Debt funds or balanced advantage funds
  • For long-term growth: Large cap or hybrid equity funds
  • Low volatility: Avoid sectoral or thematic funds
  • Track record: Consistent 3-5 year performance
  • Size: Preferably ₹500+ crore AUM

Many retirees create an SWP ladder with multiple funds for diversification.

What happens if market crashes during SWP?

Market downturns affect SWP in two ways:

  1. Higher unit redemption: More units are sold to maintain same withdrawal amount when NAV is low
  2. Sequence of returns risk: Early market crash can significantly reduce corpus longevity

Mitigation strategies:

  • Keep 1-2 years of expenses in liquid funds
  • Reduce withdrawals during major downturns
  • Diversify across asset classes
  • Consider dynamic SWP that adjusts with market levels
Can I run multiple SWPs from same fund?

Yes, most fund houses allow:

  • Multiple SWPs with different amounts/frequencies
  • Different bank accounts for different SWPs
  • Combination of SWP and lump sum withdrawals
  • SWP from same folio or different folios

This helps in:

  • Creating tiered income streams (e.g., monthly and quarterly)
  • Tax planning (managing capital gains across financial years)
  • Allocating different amounts to different expenses
What's the minimum investment for SWP?

SWP requirements vary by fund house:

Fund House Minimum Investment Minimum Withdrawal
SBI MF ₹25,000 ₹1,000/month
HDFC MF ₹50,000 ₹500/month
ICICI MF ₹25,000 ₹1,000/month
Nippon India MF ₹12,000 ₹500/month

Some funds allow SWP only if remaining units after withdrawal meet minimum balance requirement.

How does SWP compare with annuity?

Key differences between SWP and annuity plans:

Feature SWP Annuity
Corpus Control You own the investment Handed over to insurer
Income Flexibility Adjustable anytime Fixed as per contract
Inheritance Remaining corpus to heirs Typically no inheritance
Inflation Protection Can increase withdrawals Fixed or limited increase
Returns Market-linked Guaranteed but lower

Many retirees use combination of both for balanced retirement income.

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