SWP Calculator - Systematic Withdrawal Plan
Plan monthly income from your mutual fund corpus. See total withdrawn, remaining balance, growth earned, and whether your money lasts the full withdrawal period — ideal for retirement planning.
Your corpus is projected to last the full 20 years with ₹62.66 L still invested at the end.
Total Withdrawn
₹96.00 L
Remaining Corpus
₹62.66 L
Growth Earned
₹1.09 Cr
Starting Corpus
₹50.00 L
How SWP Works
A Systematic Withdrawal Plan (SWP) is the opposite of SIP. Instead of investing each month, you redeem a fixed amount while the rest stays invested. Returns on the remaining balance can partially offset withdrawals — which is why withdrawal rate and expected return both matter.
Example: ₹50 lakh corpus, ₹40,000/month SWP, 10% annual return, 20 years:
- Total withdrawn: ~₹96 lakh over 20 years
- Remaining corpus: ~₹63 lakh still invested
- Growth earned: ~₹1.09 crore end value minus ₹50 lakh starting corpus
SWP Formula
Each month in the SWP simulation:
Balance = Previous Balance × (1 + annual_rate / 12)
Balance = Balance − Monthly Withdrawal
Repeat for all months in the withdrawal period. If balance < withdrawal, corpus is depleted.
Frequently Asked Questions About SWP
What is SWP in mutual funds?
SWP (Systematic Withdrawal Plan) withdraws a fixed amount from your fund on a schedule (usually monthly). Your remaining units stay invested and can keep growing. Platforms like Groww, Zerodha Coin, and MF Central support SWP setup.
How is SWP different from SIP?
SIP adds money to a fund each month to build wealth. SWP takes money out for regular income. Use our SIP Calculator while accumulating and SWP when you need payouts in retirement.
Is SWP good for retirement?
Yes — many retirees use SWP for monthly income. Keep withdrawals modest (often 6-8% of corpus per year) relative to expected returns so the corpus does not deplete too early. Pair with our Retirement Calculator for full planning.
How is SWP return calculated?
Each month, the corpus earns returns on the remaining balance, then your fixed withdrawal is deducted. Total withdrawn is the sum of all monthly payouts. Remaining corpus is what's left after the last month — or zero if depleted early.
What is a safe monthly SWP amount?
A conservative approach is 0.5-0.7% of corpus per month from equity-oriented funds. On ₹50 lakh, that's ₹25,000-₹35,000/month. Higher withdrawals work only if returns stay strong — test scenarios with this calculator before committing.
Is SWP taxable in India?
Each SWP installment redeems mutual fund units. Only the capital gains portion is taxed — not the full withdrawal. Equity funds follow STCG/LTCG rules; debt funds are taxed per your income slab. Consult a CA for your specific portfolio mix.
SWP vs SIP — When to Use Which
- SIP: Building wealth during working years (ages 25-55)
- SWP: Generating income after retirement or goal completion
- Lumpsum + SWP: Invest a windfall, then draw monthly income
Still building wealth? Use our SIP Calculator or Lumpsum Calculator. For retirement corpus targets, try the Retirement Calculator.
Systematic Withdrawal Plan (SWP) explained
SWP lets you withdraw a fixed amount monthly from a mutual fund while the remaining corpus continues to grow. Ideal for retirees converting a lumpsum into regular income. Unlike dividends (which depend on fund performance and are not guaranteed), SWP amount is chosen by you — the fund redeems units each month to meet the withdrawal.
If withdrawals exceed returns, corpus depletes over time. At 12% expected return and ₹50,000/month SWP from ₹1 crore, corpus may last 15–20+ years depending on market sequence risk. Conservative retirees often assume 8–9% return for planning.
SWP vs annuity vs FD interest
Annuities offer guaranteed lifetime income but lower returns and less flexibility. FD interest is taxable and fixed. SWP from equity hybrid funds balances growth and income but carries market risk — consider moving to debt funds as corpus shrinks. Pair with retirement calculator for holistic planning.
Tax efficiency of SWP
Each SWP redemption is a sale of units — only the gain portion is taxed, not the full withdrawal. This can be more tax-efficient than receiving interest from FDs where the entire amount is taxable. Equity funds: LTCG rules apply on gains for units held >1 year.