SWP Calculator
Plan your regular monthly income from your investments. Calculate how long your corpus will last with a Systematic Withdrawal Plan.
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₹10K₹10Cr
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₹500₹10L
%
1%30%
Yrs
1 Yr50 Yrs
Final Estimated Balance
₹
Total Withdrawn: ₹12,00,000
Total Returns: ₹12,00,000
Initial Corpus
₹
Monthly Income
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Pro Tip
Your corpus is growing! You'll have ₹10,00,000 left after 10 years.
Corpus Value Over Time
Yearly Withdrawal Schedule
| Year | Total Withdrawn | Remaining Balance |
|---|---|---|
| 0 | ₹0 | ₹10,00,000 |
| 1 | ₹1,20,000 | ₹10,00,000 |
| 2 | ₹2,40,000 | ₹10,00,000 |
| 3 | ₹3,60,000 | ₹10,00,000 |
| 4 | ₹4,80,000 | ₹10,00,000 |
| 5 | ₹6,00,000 | ₹10,00,000 |
| 6 | ₹7,20,000 | ₹10,00,000 |
| 7 | ₹8,40,000 | ₹10,00,000 |
| 8 | ₹9,60,000 | ₹10,00,000 |
| 9 | ₹10,80,000 | ₹10,00,000 |
| 10 | ₹12,00,000 | ₹10,00,000 |
Understanding Systematic Withdrawal Plan (SWP)
A Systematic Withdrawal Plan (SWP) is a smart way to generate a regular income from your mutual fund investments. Unlike a SIP where you invest regularly, an SWP allows you to withdraw a fixed amount regularly from your existing corpus.
How SWP Benefits You
- Regular Income: Perfect for retirees or anyone needing a monthly "salary" from their wealth.
- Capital Appreciation: Your remaining balance continues to stay invested and earn returns.
- Tax Efficiency: Only the capital gains portion of your withdrawal is taxed, often making it better than dividends or interest income.
- Flexibility: You can choose the amount, frequency, and duration of withdrawals.
Best Practices
- • Withdraw less than the expected return rate to keep corpus growing.
- • Use debt or hybrid funds for more stable monthly income.
- • Start SWP after 1 year to benefit from LTCG tax rates.
Things to Watch
- • Market volatility can impact your corpus if returns are low.
- • High withdrawal rates can exhaust your capital quickly.
- • Exit loads might apply if withdrawn within a specific period.
Frequently Asked Questions
What is SWP?
SWP stands for Systematic Withdrawal Plan. It is a facility provided by mutual funds that allows an investor to withdraw a specific amount of money from their investment at regular intervals (usually monthly).
How does an SWP work?
In an SWP, you invest a lump sum amount in a mutual fund scheme. You then specify a fixed amount to be withdrawn regularly. The fund house sells the required number of units to provide you with that amount, while the remaining units continue to grow based on the fund's performance.
Is SWP better than a Dividend option?
Yes, generally SWP is considered better because it provides a fixed, predictable cash flow regardless of market conditions, whereas dividends depend on the fund's distributable surplus. SWP is also more tax-efficient for many investors.
What are the tax implications of SWP?
Each withdrawal in an SWP is considered a redemption of units. Therefore, it is subject to Capital Gains Tax (STCG or LTCG) depending on the type of fund (Equity or Debt) and the holding period of the units being redeemed.
Can I stop or change my SWP amount?
Yes, you can stop, start, or modify the withdrawal amount and frequency of your SWP at any time by submitting a request to the fund house.
Final Balance
₹
Total Withdrawn
₹12,00,000