SWP Calculator
Withdraw Smartly,
Stay Invested
Plan your Systematic Withdrawal Plan โ see exactly how long your corpus lasts and how much you can withdraw monthly without depleting it.
SWP Calculator
Plan your systematic withdrawals from mutual fund corpus
| Year | Opening Balance | Interest Earned | Total Withdrawn | Closing Balance |
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SWP Key Insights
Smart numbers every retiree should know
SWP Complete Guide
Everything you need to know about Systematic Withdrawal Plans
What is SWP?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals (monthly, quarterly, annually). Unlike FD interest, SWP withdrawals consist of both principal and gains, making taxation more efficient.
How SWP Works
Your corpus earns returns at the fund's rate. Every month, units worth your withdrawal amount are redeemed. The remaining corpus continues to grow. If returns exceed withdrawal rate, corpus grows over time. If not, it depletes gradually.
SWP vs FD Income
- SWP: Tax on gains portion only (LTCG 12.5%)
- FD: Full interest taxed at slab rate (up to 30%)
- SWP is up to 2.5ร more tax-efficient for higher tax brackets
- SWP allows remaining corpus to keep growing
SWP Formula
The 4% Withdrawal Rule Explained
The globally accepted "4% Rule" states that withdrawing 4% of your corpus annually makes it last 30+ years. For Indian investors with higher inflation (6โ7%), a safer rate is 3โ3.5% annually, or about 0.25โ0.3% per month. For โน1 Crore corpus: safe monthly SWP = โน25,000โโน30,000.
Build Your Corpus
Invest regularly via SIP for 15โ25 years
Choose Fund Type
Balanced Advantage or Hybrid for SWP
Set Withdrawal
Keep at 3โ4% annually of total corpus
Review Annually
Adjust for inflation and market changes
SWP Taxation
Tax-efficient withdrawals โ pay only on gains
Use Equity Hybrid Funds
Choose Balanced Advantage Funds โ taxed as equity (12.5% LTCG) but with lower volatility than pure equity
Stay Under โน1.25L LTCG Annually
Structure withdrawals so total gains per year stay within the โน1.25L exemption limit โ zero tax on SWP
Multiple Fund Strategy
Spread across 2โ3 funds with different purchase dates to manage LTCG efficiently across financial years
SWP Pro Tips
Expert strategies for sustainable withdrawals
Keep Withdrawal Below Return Rate
If your fund earns 10% annually, keep your annual withdrawal below 10% of corpus. This ensures the corpus stays intact or even grows over time, making your SWP truly perpetual.
Choose Monthly Over Quarterly SWP
Monthly SWP provides regular cash flow matching monthly expenses. It also reduces the risk of redeeming units at a market low โ you average out over the year.
Keep 6-Month Emergency in Liquid Fund
Don't rely solely on SWP. Keep 6 months of expenses in a liquid fund. This prevents you from stopping SWP during market downturns just because you need emergency cash.
Step-Up Your SWP for Inflation
Increase SWP amount by 5โ7% annually to match inflation. A โน30,000 SWP today should be โน40,000+ in 5 years to maintain the same lifestyle.
SWP is 2โ3ร More Tax Efficient than FD
FD interest is fully taxed at your slab rate (up to 30%). SWP from equity funds โ only the gain portion (usually 20โ40% of withdrawal) is taxed at 12.5%. Massive saving for โน30% bracket investors.
STP + SWP for Smoother Transition
At retirement, park lumpsum in liquid fund. Use Systematic Transfer Plan (STP) to move to hybrid fund, then start SWP from hybrid. This prevents buying at market peak.
Retirement Goal Planner
How much corpus do you need for your monthly needs?
Frequently Asked Questions
Answers to common questions about Systematic Withdrawal Plans
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