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Total Withdrawn: ₹90 Lakhs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