SWP Calculator

What is SWP?

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from your mutual fund investment. It's the reverse of a SIP (Systematic Investment Plan). Your remaining corpus continues to earn returns while you draw a steady income — making SWP ideal for retirement planning, generating monthly income from savings, or structured de-accumulation.

SWP vs Fixed Deposit for Retirement Income

While FDs offer guaranteed returns, SWPs from equity or balanced funds can provide higher returns over the long term. An FD at 7% on ₹50 lakh gives about ₹29,167/month as interest, but the corpus doesn't grow. An SWP from a fund earning 10% allows flexible withdrawals while the remaining corpus keeps growing. Use our FD Calculator to compare both options.

Tax Implications of SWP

SWP withdrawals from equity funds held over 1 year attract Long-Term Capital Gains (LTCG) tax at 12.5% on gains exceeding ₹1.25 lakh per year. For debt funds, gains are taxed as per your income tax slab. This is often more tax-efficient than FD interest, which is fully taxable. Check your tax liability using our Income Tax Calculator.

How to Plan Your SWP

The key rule: your withdrawal rate should ideally be less than your expected return rate. If your fund earns 10% and you withdraw 6% annually, your corpus still grows. A common guideline is the "4% rule" — withdrawing 4% annually gives your corpus a high chance of lasting 30+ years. Build your corpus first using our SIP Calculator or Lumpsum Calculator.

When Does the Corpus Get Depleted?

If your monthly withdrawal exceeds the monthly returns, the corpus shrinks each month. This calculator simulates the process month by month and alerts you if and when your corpus runs out. If it depletes too soon, consider reducing the withdrawal amount, increasing your corpus, or exploring higher-return investment options.

Frequently Asked Questions