SWP Calculator
Estimate your regular withdrawal income, remaining balance, and total value from your investment.
Start Calculating arrow_downwardWithdrawal Details
SWP Summary
Your investment may get exhausted after X years and Y months based on the selected withdrawal amount.
Total Investment
₹ 10,00,000
Total Withdrawn
₹ 12,00,000
Total Growth Earned
₹ 10,23,391
Total Withdrawals
120
Final Remaining Balance
₹ 8,23,391
What is a Systematic Withdrawal Plan?
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed sum of money from a mutual fund scheme regularly (monthly, quarterly, half-yearly, or yearly). It is the opposite of an SIP. While an SIP helps you build a corpus, an SWP helps you generate a regular income stream from your accumulated corpus.
How it Works
For every selected period, the calculator determines:
Benefits of SWP
- check_circle Regular Income: Ideal for retirees seeking a steady monthly payout.
- check_circle Capital Appreciation: The remaining money continues to grow.
- check_circle Tax Efficiency: SWP is generally more tax-efficient than FDs or dividend payouts.
Frequently Asked Questions
What happens if my withdrawal amount is too high? expand_more
If you withdraw more than what the fund generates as returns, you will start depleting your principal investment. If this continues, your entire corpus may get exhausted before your desired duration. A safe withdrawal rate is usually lower than your expected return rate.
Can I stop or change my SWP? expand_more
Yes, SWP is highly flexible. You can stop, pause, or change the withdrawal amount and frequency at any time without any penalties.
How is SWP taxed? expand_more
When you withdraw via SWP, each withdrawal is considered as a partial redemption of units. Only the capital gains portion of the withdrawal is taxed, not the principal. For equity funds, long-term capital gains (beyond 1 year) are taxed efficiently.
Should I choose SWP or Dividend plan? expand_more
SWP is highly recommended over Dividend (IDCW) plans because dividends are added to your taxable income and taxed at your slab rate, while SWP allows for better capital gains tax treatment. Also, dividends are not guaranteed, but SWP gives a fixed payout.
Who should opt for SWP? expand_more
SWP is perfect for retirees, individuals on a sabbatical, or anyone seeking a secondary regular income stream from a lump sum corpus.