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SWP Calculator
Calculate Systematic Withdrawal Plan returns and plan regular income from your mutual fund investments
Initial Investment
₹10,00,000
Starting corpus
Total Withdrawals
₹12,00,000
Over 10.0 years
Final Value
₹9,76,996
Remaining corpus
Annual Withdrawal
₹1,20,000
12.0% of corpus
₹
₹
Per monthly withdrawal
SWP Benefits
- • Regular income stream
- • Rupee cost averaging benefits
- • Flexibility to change amount
- • Tax efficiency on equity funds
- • Capital appreciation potential
Sustainability Analysis
Annual Withdrawal Rate: 12.00%
Expected Annual Return: 12%
Sustainability: Sustainable
Fund Duration: 10+ years
Tax Implications
Total Tax on Withdrawals: ₹0
Net Withdrawals: ₹12,00,000
Note: Tax calculation assumes equity mutual funds with LTCG tax of 10% on gains above ₹1 lakh per year.
Withdrawal Strategy
Monthly Withdrawal: ₹10,000
Annual Withdrawal: ₹1,20,000
Withdrawal Type: Fixed Amount
Recommendations
• High risk! Strongly recommend reducing withdrawal amount.
• Consider diversifying across equity and debt funds
• Review and adjust withdrawal amount annually
• Keep 6-12 months emergency fund separate
Monthly Summary
Initial Corpus: ₹10,00,000
Per Period Withdrawal: ₹10,000
Expected Return: 12% annual
Total Periods: 120
Total Withdrawn: ₹12,00,000
Remaining Value: ₹9,76,996
Risk Analysis
Market Risk: Medium
Longevity Risk: High
Inflation Risk: High
• Past performance doesn't guarantee future returns
• Market volatility can impact actual returns
• Consider professional financial advice
Year-by-Year Projections
| Year | Opening Balance | Annual Withdrawal | Returns | Closing Balance | Cumulative Withdrawal |
|---|---|---|---|---|---|
| 1 | ₹10,00,000 | ₹1,20,000 | ₹1,18,732 | ₹9,98,732 | ₹1,20,000 |
| 2 | ₹9,98,732 | ₹1,20,000 | ₹1,18,571 | ₹9,97,303 | ₹2,40,000 |
| 3 | ₹9,97,303 | ₹1,20,000 | ₹1,18,390 | ₹9,95,692 | ₹3,60,000 |
| 4 | ₹9,95,692 | ₹1,20,000 | ₹1,18,185 | ₹9,93,878 | ₹4,80,000 |
| 5 | ₹9,93,878 | ₹1,20,000 | ₹1,17,955 | ₹9,91,833 | ₹6,00,000 |
| 6 | ₹9,91,833 | ₹1,20,000 | ₹1,17,696 | ₹9,89,529 | ₹7,20,000 |
| 7 | ₹9,89,529 | ₹1,20,000 | ₹1,17,404 | ₹9,86,933 | ₹8,40,000 |
| 8 | ₹9,86,933 | ₹1,20,000 | ₹1,17,074 | ₹9,84,007 | ₹9,60,000 |
| 9 | ₹9,84,007 | ₹1,20,000 | ₹1,16,703 | ₹9,80,711 | ₹10,80,000 |
| 10 | ₹9,80,711 | ₹1,20,000 | ₹1,16,285 | ₹9,76,996 | ₹12,00,000 |
Understanding SWP
What is SWP?
- • Systematic Withdrawal Plan for regular income
- • Opposite of SIP - you withdraw instead of invest
- • Ideal for retirees or those needing regular income
- • Units are sold periodically as per your instruction
- • Remaining investment continues to grow
SWP vs Fixed Deposits
- • SWP offers potential for higher returns
- • Market-linked returns vs fixed FD returns
- • Better tax efficiency on equity funds
- • Flexibility to change withdrawal amount
- • Capital appreciation while withdrawing
Tax Benefits
- • LTCG tax only on gains (10% above ₹1 lakh)
- • No TDS on withdrawals
- • Tax only on capital gains portion
- • Better than FD interest taxation
- • Indexation benefits for debt funds (old regime)
Best Practices
- • Keep withdrawal rate below 6% annually
- • Diversify across equity and debt funds
- • Review and adjust annually
- • Maintain emergency fund separately
- • Consider inflation impact on fixed amounts