SWP Calculator – Systematic Withdrawal Plan

Calculate monthly income from your mutual fund corpus. Visualize how your balance changes over time and estimate total withdrawals for retirement planning.

Quick Examples:

Withdrawal Details

Final Balance Remaining

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Total Amount Withdrawn Final Balance
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SWP Balance & Withdrawal Projection

Yearly Breakdown Table

Year Withdrawn Yearly Interest Earned Closing Balance

Steady Income vs Capital Growth

1. Monthly Cashflow Logic

In this calculator, the withdrawal happens at the **start of each month**. Interest for that month is then calculated on the remaining balance. This accurately mirrors how Indian mutual fund houses execute SWP instructions.

2. Wealth Preservation

If your expected ROI on the residual balance is higher than your withdrawal rate, your corpus will actually grow over time, creating a "perpetual" source of income.

What is a Systematic Withdrawal Plan (SWP)?

A Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows an investor to withdraw a fixed amount of money at regular intervals (usually monthly). It is the mathematical opposite of a SIP (Systematic Investment Plan).

While SIP is used to accumulate wealth, SWP is the primary tool for wealth distribution. It is widely used by retirees in India to generate a steady monthly income from their accumulated corpus while keeping the remaining principal invested in market-linked instruments for better returns than traditional Fixed Deposits.

Why SWP Matters for Retirement Planning

Standard savings plans often fail to beat inflation. SWP provides a unique advantage known as Capital Appreciation alongside liquidity.

  • Tax Efficiency: Only the capital gains portion of the withdrawal is taxed, making it more efficient than interest from savings accounts.
  • Flexibility: You can increase, decrease, or stop the withdrawal amount anytime based on your needs.
  • Inflation Protection: Because the remaining balance stays in equity or hybrid funds, it has the potential to grow and hedge against rising costs.

SWP Formula

Balancenew = [Balanceprev - W] × (1 + r)

Balancenew: End of Month Balance | r: Monthly Return Rate | W: Monthly Withdrawal

Frequently Asked Questions

1. What is SWP in mutual funds?
SWP allows you to withdraw a fixed amount regularly from your mutual fund scheme. It provides regular cash flow and is ideal for retirees.
2. Is SWP better than SIP?
SIP is for building a corpus (investing), while SWP is for generating income (withdrawing). They serve different life stages.
3. How is SWP taxed in India (2026)?
Only the 'growth' part of your withdrawal is taxed. For equity funds held over 1 year, gains above ₹1.25L are taxed at 12.5%.
4. How much withdrawal is safe?
A 4-6% annual withdrawal rate is generally considered safe to ensure the principal lasts for 25-30 years.
5. Can I start SWP in any mutual fund?
Yes, most open-ended schemes allow SWP. However, it is most commonly used in Debt, Hybrid, or Conservative Equity funds.
6. Is there an exit load on SWP?
Yes, if you withdraw before the exit load period (usually 1 year), you may have to pay a 1% load on the withdrawn amount.
7. What happens if the market crashes?
If returns are lower than withdrawals during a crash, you may eat into your principal faster. This is called 'sequence of returns risk'.
8. Can I change the withdrawal date?
Yes, you can choose a specific date of the month for your SWP payout while setting up the plan.
9. Does SWP reduce my number of units?
Yes. To pay you the fixed amount, the AMC sells (redeems) the required number of units based on the current day's NAV.
10. Can I have multiple SWPs?
Yes, you can set up separate SWPs from different mutual fund schemes to diversify your income sources.

Related Financial Tools

SIP Calculator

Accumulate your corpus.

CAGR Calculator

Check growth rates.

Inflation Tool

Plan for future costs.

EMI Calculator

Manage loan outflows.

Disclaimer

Estimated results for educational purposes only. Mutual fund investments are subject to market risks. Past performance is not an indicator of future returns.

Last Updated: March 2026