SWP Calculator

Calculate systematic withdrawal plan from mutual fund investment

SWP Details

Initial Investment (₹)

Monthly Withdrawal (₹)

Expected Annual Return (%)

Withdrawal Period (years)

Enter SWP details and click Calculate

Total Withdrawn

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Remaining Corpus

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Total Returns Earned

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Corpus Depletion

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Year	Opening	Returns	Withdrawn	Closing

How to Use

Enter your Initial Investment — the mutual fund corpus you have or plan to create.
Enter the Monthly Withdrawal Amount — how much you plan to withdraw each month.
Set Expected Annual Return (the fund's expected return — typically 8–12% for balanced/hybrid funds).
Set the Withdrawal Period (years) or leave blank to see when the corpus runs out.
Click Calculate to see the year-wise corpus, total withdrawn, and whether the corpus sustains your withdrawals.

What is SWP?

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (monthly, quarterly). It is the reverse of SIP — instead of investing monthly, you withdraw monthly. SWP is popular among retirees as it provides a regular income while keeping the remaining corpus invested and growing.

SWP vs Fixed Deposit for Retirement Income

Feature	SWP	FD Interest Withdrawal
Returns	8–12% (market-linked)	6–7.5% (fixed)
Corpus Growth Potential	Yes — corpus can grow	No growth (fixed principal)
Inflation Protection	Partial (equity exposure)	None
Tax (Senior Citizen, LTCG)	12.5% on gains above ₹1.25L	30% on interest (per slab)
Flexibility	High (can change amount)	Low (fixed term)

The Sustainability Rule

For your corpus to be sustainable indefinitely, your monthly withdrawal must be less than monthly return earned. If corpus = ₹1 crore at 9% annual return, monthly return = ₹75,000. Withdrawing less than ₹75,000/month means the corpus never depletes (it actually grows). Withdrawing more depletes it over time.

Tax Treatment of SWP

Each withdrawal from an equity fund is treated as a redemption. Capital gains tax applies on the gains portion.
LTCG (held 1+ year): 12.5% on gains above ₹1.25L per year.
STCG (held less than 1 year): 20% flat.
For debt funds: gains taxed at income slab rate regardless of holding period.

Frequently Asked Questions

For most retirees with a reasonable corpus, SWP from equity or hybrid funds is more tax-efficient than FD interest. FD interest is taxed at your income slab rate (30% for seniors in higher bracket). SWP redemptions are largely long-term capital gains (12.5% on gains above ₹1.25L). Additionally, equity funds can grow faster than inflation, potentially making the corpus last longer. Recommended approach: split corpus between FD (for stability) and equity/hybrid fund SWP.

Key principle: if your monthly withdrawal < monthly returns earned, the corpus never depletes. Example: ₹1 crore at 9% annual return earns ₹75,000/month. Withdrawing ₹60,000/month = corpus grows over time. For safety: (1) keep a 2–3 year expense buffer in FD, (2) use dynamic withdrawal — withdraw less in bad market years, (3) rebalance annually between equity and debt, (4) increase withdrawal by inflation rate, not more.

During a crash, fund NAV falls, so each month's withdrawal redeems more units at lower prices — permanently reducing future growth potential. This is called 'sequence of returns risk.' Protection strategies: (1) keep 2 years' expenses in FD and pause SWP during crashes, (2) use a hybrid/balanced advantage fund for SWP — these automatically reduce equity in overvalued markets, (3) have a flexible withdrawal strategy.