Systematic Withdrawal Plan Calculator

Initial Investment Corpus (₹)

₹1L ₹5Cr

Your total invested amount or retirement corpus

Monthly Withdrawal Amount (₹)

₹5K ₹5L

Amount you want to withdraw every month

Expected Annual Return (%)

1% 25%

Conservative: 6-8%, Moderate: 8-10%, Aggressive: 10-12%

Annual Inflation Rate (%)

0% 15%

Average inflation to adjust withdrawal amount

Inflation Adjustment

Your SWP Investment Results

25 Years 6 Months

Your corpus will last

Initial Corpus

₹50,00,000

Monthly Withdrawal

₹50,000

Annual Withdrawal Rate

12.0%

Total Withdrawn

₹1,53,00,000

Remaining Corpus

₹2,50,000

Effective Yield

206.0%

Withdrawal Sustainability

Good! Your corpus will last 25+ years.

Recommendations

✅ Your withdrawal rate is moderate and sustainable
✅ Corpus will likely last your lifetime
💡 Review and rebalance portfolio annually
💡 Keep 1-2 years expenses as emergency fund

SWP Strategies

Conservative

Withdraw 3-4% annually

Corpus likely to last lifetime

Moderate

Withdraw 5-6% annually

Balance income & longevity

Aggressive

Withdraw 7-8% annually

Higher income, shorter duration

What is Systematic Withdrawal Plan (SWP)?

SWP is a facility that allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals. It's the opposite of SIP and is ideal for generating regular income from your accumulated corpus, especially during retirement.

How SWP Works

💰

Invest Corpus

Start with lumpsum investment in mutual funds

→

📅

Set Withdrawal

Choose monthly/quarterly withdrawal amount

→

💵

Regular Income

Receive fixed amount while balance grows

Ideal SWP Candidates

Retirees: Generate regular pension-like income from retirement corpus
Income Seekers: Those needing regular income without depleting capital
Goal-Based Investors: Fund specific goals like EMIs or education fees
Tax Optimizers: Reduce tax burden compared to interest income

SWP Best Practices

4% Rule: Withdraw only 4% of corpus annually for perpetual income
Asset Allocation: Maintain 60:40 equity-debt ratio for balanced growth
Emergency Fund: Keep 1-2 years expenses separate from SWP corpus
Review Annually: Adjust withdrawal based on corpus performance
Tax Planning: Time withdrawals to optimize tax liability

SWP Calculator - Frequently Asked Questions

What is the ideal withdrawal rate for SWP? ▼

The safe withdrawal rate is typically 4-5% annually of your corpus. This ensures your investment lasts 25-30 years even with inflation adjustment. Higher rates may deplete corpus faster, while lower rates provide more sustainability.

How is SWP different from dividend option in mutual funds? ▼

SWP is more tax-efficient as only capital gains are taxed, while dividends are taxed at slab rates. SWP provides predictable cash flows as you decide the amount and frequency, whereas dividend payments depend on fund performance and AMC decisions.

Can I modify my SWP amount and frequency later? ▼

Yes, SWP is completely flexible. You can increase, decrease, pause, or stop withdrawals anytime based on your financial needs. You can also change the frequency from monthly to quarterly or vice versa by submitting a request to your fund house.

Which mutual funds are best suited for SWP? ▼

Conservative hybrid funds, balanced advantage funds, and debt funds are ideal for SWP due to lower volatility and steady returns. Liquid funds and ultra-short duration funds work best for regular withdrawals as they provide stable returns with minimal risk.

What happens to my SWP during market downturns? ▼

During market falls, more units are redeemed for the same withdrawal amount due to lower NAV. This can accelerate corpus depletion. Consider reducing withdrawal temporarily during significant market corrections if you don't need the funds urgently.

How is SWP taxed in India? ▼

SWP is treated as redemption for tax purposes. For equity funds, LTCG above ₹1.25 lakh is taxed at 12.5% (holding >1 year). STCG is taxed at 15%. For debt funds, gains are taxed as per your income tax slab with no indexation benefit from 2023 onwards.

What is the minimum corpus required to start SWP? ▼

Most mutual funds require a minimum investment of ₹1,000 to ₹5,000 for SWP, but the practical minimum depends on your withdrawal amount. For sustainable SWP, your corpus should be at least 20-25 times your annual withdrawal requirement.

How does SWP compare with fixed deposits for regular income? ▼

SWP offers potential for capital appreciation and tax efficiency over FDs. While FD interest is fully taxable at slab rates (up to 30%), SWP gains are taxed at 12.5% for equity funds. SWP also provides flexibility to adjust withdrawals, unlike fixed FD payouts.

Disclaimer: This SWP calculator is for informational purposes only and does not constitute financial or investment advice. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Please consult your financial advisor before making investment decisions.

SWP Calculator - Systematic Withdrawal Plan