SWP Calculator — Systematic Withdrawal Plan
Calculate how long your corpus lasts with monthly withdrawals — balance chart & withdrawal analysis
SWP Parameters
Corpus remains after 50 years
₹20.71 Cr
Withdrawal sustainable indefinitely ✓
Total Withdrawn
₹1.80 Cr
Returns Earned
₹22.01 Cr
Initial Corpus
₹50.00 L
📉 Corpus Balance Over Time
Yearly snapshot of remaining corpus
💰 Money Flow Summary
🏛️ Tax Implications of SWP
• Equity MF (held > 1 yr): LTCG 12.5% on gains above ₹1.25L/year
• Equity MF (held < 1 yr): STCG 20% on gains
• Debt MF: Taxed as per income slab (like FD interest)
• Only gains are taxed — not the full withdrawal amount
• SWP is far more tax-efficient than FD, where full interest is taxable
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SWP Calculator — Retirement Income Guide
SWP (Systematic Withdrawal Plan) is ideal for retirement income. Unlike FD, SWP allows your remaining corpus to grow while you withdraw monthly. This makes your money last significantly longer.
How SWP Works
Example: ₹50L corpus, ₹30K/month withdrawal, 10% return → corpus lasts 30+ years. Same corpus in FD at 7%: lasts only ~16 years. The difference is the higher earning rate offsetting withdrawals.
Tax Efficiency of SWP
Only the gain portion of each withdrawal is taxed. For a ₹30K monthly withdrawal, typically only ₹2,000-8,000 is taxable gain (LTCG at 12.5%). This is far more efficient than FD where the full interest income is taxable.
Frequently Asked Questions
What is SWP (Systematic Withdrawal Plan)?
SWP is the reverse of SIP. Instead of investing, you withdraw a fixed amount monthly from your mutual fund corpus. The remaining corpus continues to earn returns, extending how long it lasts.
Which fund type is best for SWP?
Balanced Advantage Funds, Hybrid Funds, or Debt Funds are popular for SWP. For long retirement horizons, equity-heavy hybrid funds offer higher returns to sustain withdrawals longer.
Is SWP better than FD for retirement?
SWP often beats FD because: (1) Higher returns (8-12% vs 6-7%), (2) Only gains are taxed (not full withdrawal), (3) LTCG tax (10%) is lower than FD income tax rate. For ₹50L corpus with ₹30K/month, SWP lasts 30+ years vs FD exhausting in ~16 years.
What are the tax implications of SWP?
In equity MFs: STCG (held < 1 yr) taxed at 20%. LTCG (held > 1 yr) taxed at 12.5% above ₹1.25L/year. In debt MFs: taxed as per your income slab. Only the gain component is taxed, not the full withdrawal.
How does inflation-adjusted SWP work?
Inflation-adjusted SWP increases your withdrawal amount each year to maintain purchasing power. For example, ₹30,000/month today needs to be ₹53,973 in 10 years at 6% inflation to buy the same goods.