SWP Calculator
Calculate Systematic Withdrawal Plan returns and plan your retirement income
Enter SWP details and click Calculate to see results
What is SWP?
Systematic Withdrawal Plan (SWP) is a facility that allows you to withdraw a fixed amount from your mutual fund investments at regular intervals (monthly, quarterly, etc.). It's the opposite of SIP and is ideal for generating regular income from your investments.
How SWP Works
In SWP, you redeem a fixed number of units from your mutual fund investment at regular intervals. The amount you receive depends on the NAV (Net Asset Value) at the time of redemption.
Example: If you have ₹10 lakh invested and want ₹25,000 monthly, the calculator will show how long your investment will last based on expected returns.
Benefits of SWP
- ✓Regular Income: Provides steady cash flow for expenses or retirement
- ✓Tax Efficiency: Only capital gains are taxed, not the entire withdrawal
- ✓Flexibility: Can modify or stop SWP anytime
- ✓Rupee Cost Averaging: Benefit from market volatility over time
- ✓Capital Appreciation: Remaining investment continues to grow
SWP vs Fixed Deposits
SWP Advantages
- • Potential for higher returns
- • Tax-efficient withdrawals
- • Inflation protection
- • Flexible withdrawal amounts
- • Capital appreciation potential
FD Advantages
- • Guaranteed returns
- • Capital protection
- • No market risk
- • Predictable income
- • DICGC insurance (up to ₹5L)
Tax Implications
- Equity Funds: LTCG tax @10% (if gains > ₹1L/year), STCG @15%
- Debt Funds: LTCG and STCG as per income tax slab
- Tax Efficiency: Only the gain portion is taxed, not the entire withdrawal
- Indexation: Available for debt funds held for more than 3 years
Best Practices for SWP
- 💡Choose diversified equity funds for long-term SWP
- 💡Keep withdrawal rate below 6-8% annually for sustainability
- 💡Consider inflation impact on your withdrawal needs
- 💡Review and adjust SWP amount periodically
- 💡Maintain emergency fund separate from SWP investments
Important Considerations
- ⚠Market volatility can affect the longevity of your investment
- ⚠High withdrawal rates may deplete your corpus faster
- ⚠Exit load may apply if you redeem within specified period
- ⚠Past performance doesn't guarantee future returns
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