SWP Calculator

A Systematic Withdrawal Plan lets you redeem a fixed amount from a mutual-fund investment at regular intervals, usually monthly. The rest of your money stays invested and continues to earn returns, so an SWP can provide a steady income stream while still growing the remaining corpus.

A lump-sum withdrawal takes everything out at once, ending all future growth and often triggering a large tax event in a single year. An SWP spreads withdrawals over time, so the un-withdrawn balance keeps compounding and your capital-gains tax is spread across many years and units.

Yes. Each SWP withdrawal is treated as a partial redemption, and only the gains portion of each withdrawal is taxable as capital gains, not the whole amount. The rate depends on the fund type and how long those units were held. This calculator shows gross figures before tax; consult a tax advisor for your specific situation.

It depends on your withdrawal rate versus your return rate. If you withdraw more than your corpus earns, the balance shrinks every month and will eventually hit zero. This calculator simulates every month and warns you of the exact year your corpus would run out, so you can lower the withdrawal or adjust expectations before committing.

Retirees often want a dependable monthly payout without cashing out their whole portfolio. An SWP delivers that predictable income while keeping the balance invested for growth and inflation protection, and it's more tax-efficient than dividends because only the gains in each withdrawal are taxed.

A common starting point is to withdraw no more than about 4% of your corpus in the first year, which on ₹1 crore is roughly ₹33,000 a month. Many Indian planners prefer 3 to 3.5% because inflation here has historically run higher. The real test is whether your withdrawal rate sits below your expected return with room to spare. Set the withdrawal too close to the return and one bad market stretch can permanently shrink the corpus.

It depends on how long the plan must last. For income needed within a few years, debt or conservative hybrid funds reduce the risk that a market fall forces you to sell units cheaply. For a 15 or 20 year drawdown, a balanced advantage or equity-oriented hybrid fund is often used so the corpus keeps growing against inflation. Running an SWP out of a pure equity fund is possible but exposes each monthly redemption to sequence-of-returns risk.

Usually on tax, not always on certainty. FD interest is added to your income and taxed at your slab rate, so a 30% slab taxpayer loses a large slice. In an SWP only the gains portion of each withdrawal is taxed, and as capital gains rather than at slab rates, so the effective tax is typically much lower. The trade-off is that FD returns are contractually fixed while an SWP depends on markets and can deplete faster than planned.

Yes. An SWP is an instruction to the fund house, not a locked contract. You can raise or lower the monthly amount, change the withdrawal date, pause it, or cancel it entirely, usually with a few working days of notice. That flexibility is worth using: if markets fall sharply, trimming the withdrawal for a while leaves more units invested to recover. Re-run this calculator at the new amount to see how the revised plan changes the year your corpus runs out.