SWP Calculator: A Systematic Withdrawal Plan (SWP) Calculator helps investors estimate regular cash flow from mutual funds by calculating:
✅ Monthly/Quarterly Withdrawal Amount
✅ Remaining Corpus After Withdrawals
✅ Impact of Market Returns on Sustainability

SWP is ideal for retirees or those needing passive income while keeping investments growing.

How SWP Calculation Works

SWP Formula (Withdrawal Sustainability):

Remaining Corpus=P×(1+r)n−W×(1+r)n−1r

  • P = Initial Investment

  • r = Expected Monthly Return (Annual Return ÷ 12)

  • n = Withdrawal Tenure (Months)

  • W = Monthly Withdrawal Amount

Example Calculation:

  • Initial Investment (P): ₹50 Lakhs

  • Annual Return (r): 10% → Monthly Return = 0.83%

  • Monthly Withdrawal (W): ₹50,000

  • Tenure (n): 15 years (180 months)

Corpus After 15 Years:

50,00,000×(1.0083)180−50,000×(1.0083)180−10.0083≈∗∗₹1.12Crore∗∗

Key Insight:

  • Total Withdrawn: ₹90 Lakhs

  • Final Corpus: ₹1.12 Crore (Due to compounding at 10%)

Benefits of Using an SWP Calculator

✅ Passive Income Planning – Ensure withdrawals don’t deplete corpus
✅ Tax Efficiency – Only capital gains are taxed (not principal)
✅ Flexibility – Adjust withdrawal amounts/tenure anytime
✅ Compare Scenarios – Test different return rates

SWP vs Dividend Options

Factor SWP Dividend Option
Control Choose exact withdrawal amount Dependent on fund’s dividend policy
Taxation LTCG/STCG applies Tax-free up to ₹5,000/year (Sec 10(34))
Reliability Guaranteed cash flow Dividends can be irregular/suspended

SWP Tax Rules (2024)

Fund Type Holding Period Tax Rate
Equity Funds >1 year (LTCG) 10% above ₹1L
Debt Funds >3 years (LTCG) 20% with indexation
Hybrid Funds Depends on equity % As per equity/debt split

Note: No TDS on SWP withdrawals

FAQs on SWP Calculator

1. What is the minimum investment for SWP?

  • Typically ₹25,000-50,000 (varies by fund).

2. Can I change SWP amount later?

  • Yes, increase/decrease/freeze withdrawals anytime.

3. Is SWP better than FD for retirement income?

  • Yes for long-term (higher returns + tax benefits).

4. How often can I withdraw via SWP?

  • Monthly/Quarterly/Yearly (flexible frequency).

5. What if market crashes during SWP?

  • Corpus depletes faster; consider dynamic withdrawals (e.g., reduce amount in downturns).

Try Our Free SWP Calculator

Plan stress-free withdrawals with our SWP Calculator:
📌 Test “safe withdrawal rate” (3-4% rule)
📌 Compare equity vs debt SWP sustainability
📌 Optimize tax-efficient cash flow

Calculate Now & Secure Your Retirement Income!

Key Takeaways

  • ₹50L at 10% returns can pay ₹50K/month for 15+ years

  • Equity SWPs beat inflation long-term

  • Tax-efficient compared to FD interest