Finance

SWP Calculator — Systematic Withdrawal Plan

Calculate how long your corpus lasts with monthly withdrawals — balance chart & withdrawal analysis

SWP Parameters

₹1L₹50.00 L₹5Cr
₹1K₹30,000/mo₹2L
1%10%20%

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Total Withdrawn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

Initial Corpus₹50.00 L
Returns Earned₹22.01 Cr
Total Withdrawn₹1.80 Cr

🏛️ 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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📖 Learn More About SWP Calculator — Systematic Withdrawal Plan

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.