Systematic Withdrawal Plan Calculator

Initial Investment Corpus (₹)

₹1L ₹5Cr

Your total invested amount or retirement corpus

Monthly Withdrawal Amount (₹)

₹5K ₹5L

Amount you want to withdraw every month

Expected Annual Return (%)

1% 25%

Conservative: 6-8%, Moderate: 8-10%, Aggressive: 10-12%

Annual Inflation Rate (%)

0% 15%

Average inflation to adjust withdrawal amount

Inflation Adjustment

Your SWP Investment Results

25 Years 6 Months

Your corpus will last

Initial Corpus

₹50,00,000

Monthly Withdrawal

₹50,000

Annual Withdrawal Rate

12.0%

Total Withdrawn

₹1,53,00,000

Remaining Corpus

₹2,50,000

Effective Yield

206.0%

Withdrawal Sustainability

Good! Your corpus will last 25+ years.

Recommendations

✅ Your withdrawal rate is moderate and sustainable
✅ Corpus will likely last your lifetime
💡 Review and rebalance portfolio annually
💡 Keep 1-2 years expenses as emergency fund

SWP Strategies

Conservative

Withdraw 3-4% annually

Corpus likely to last lifetime

Moderate

Withdraw 5-6% annually

Balance income & longevity

Aggressive

Withdraw 7-8% annually

Higher income, shorter duration

What is Systematic Withdrawal Plan (SWP)?

SWP is a facility that allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals. It's the opposite of SIP and is ideal for generating regular income from your accumulated corpus, especially during retirement.

How SWP Works

💰

Invest Corpus

Start with lumpsum investment in mutual funds

→

📅

Set Withdrawal

Choose monthly/quarterly withdrawal amount

→

💵

Regular Income

Receive fixed amount while balance grows

Ideal SWP Candidates

Retirees: Generate regular pension-like income from retirement corpus
Income Seekers: Those needing regular income without depleting capital
Goal-Based Investors: Fund specific goals like EMIs or education fees
Tax Optimizers: Reduce tax burden compared to interest income

SWP Best Practices

4% Rule: Withdraw only 4% of corpus annually for perpetual income
Asset Allocation: Maintain 60:40 equity-debt ratio for balanced growth
Emergency Fund: Keep 1-2 years expenses separate from SWP corpus
Review Annually: Adjust withdrawal based on corpus performance
Tax Planning: Time withdrawals to optimize tax liability

SWP Calculator - Frequently Asked Questions

What is the ideal withdrawal rate?

The safe withdrawal rate is typically 4-5% annually. This ensures your corpus lasts 25-30 years even with inflation adjustment. Higher rates may deplete corpus faster.

Is SWP better than dividend option?

Yes, SWP is more tax-efficient as only capital gains are taxed. Dividends are taxed at slab rates. SWP also provides more control over cash flows.

Can I change SWP amount later?

Yes, SWP is completely flexible. You can increase, decrease, pause, or stop withdrawals anytime based on your needs.

Which funds are best for SWP?

Balanced advantage funds, conservative hybrid funds, and large-cap funds are ideal for SWP due to lower volatility and steady returns.

What happens in market downturns?

During market falls, more units are redeemed for the same withdrawal amount. Consider reducing withdrawal temporarily to preserve corpus.

How is SWP taxed?

Only capital gains portion is taxed. LTCG above ₹1 lakh is taxed at 10% for equity funds. Debt funds are taxed as per slab rates.

SWP Calculator - Systematic Withdrawal Plan