SWP Calculator
Calculate your Systematic Withdrawal Plan returns, remaining balance, and total withdrawals from mutual fund investments.
* All calculations are approximate.
How SWP Works?
Calculate your Systematic Withdrawal Plan returns, remaining balance, and total withdrawals from mutual fund investments.
You invest a lump sum in a mutual fund and set up regular monthly withdrawals of a fixed amount.
Each withdrawal redeems units from your fund at the current NAV to provide the requested cash flow.
The remaining invested amount continues to earn returns, partially offsetting the withdrawals.
If the fund's returns exceed your withdrawal rate, your corpus can sustain or even grow over time.
Formula Used
Remaining Balance = Investment × (1+r)^n - Withdrawal × ((1+r)^n - 1) / r
Where r = Monthly rate of return, n = Total months of withdrawal
Important — Read Before You Decide
- SWP provides regular income from mutual fund investments without selling the entire holding at once
- Withdrawals from equity mutual funds held for more than 1 year attract LTCG tax at 10% on gains above ₹1 lakh per year
- SWP is more tax-efficient than FD interest for retirees, as only the capital gains portion is taxed — not the principal
- Your withdrawal rate should ideally be less than the expected rate of return to preserve your capital over time
- SWP can be started from any open-ended mutual fund scheme — equity, debt, or hybrid
- Market downturns can deplete your corpus faster than expected due to sequence of returns risk
- SWP is not a guaranteed income source unlike pension or annuity — returns depend on market performance
- Consider using a mix of debt and equity funds for SWP to balance stability and growth
What Happens If You Ignore These?
- Withdrawing more than your fund earns each month will steadily erode your principal until it runs out
- Starting SWP without an emergency fund may force you to increase withdrawals during unexpected expenses
- Ignoring tax implications of SWP from equity funds can lead to surprise tax bills on capital gains
- Not reviewing your SWP periodically can result in your corpus depleting years earlier than planned
- Relying solely on SWP without any guaranteed income source leaves you vulnerable to prolonged market downturns
Smart Tips
- Keep your monthly withdrawal rate below 6-7% annually of your total corpus to make it last longer
- Use a debt or balanced fund for SWP if you need more predictable withdrawals with lower volatility
- Review and adjust your SWP amount annually based on fund performance and your actual expenses
- Maintain 6-12 months of expenses in a liquid fund or savings account as a buffer alongside SWP
- Start SWP after building a sufficiently large corpus — the bigger the base, the longer it sustains withdrawals
- Consider a systematic transfer plan (STP) from debt to equity before starting SWP for better entry points
Frequently Asked Questions
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