SWP Calculator — Systematic Withdrawal Plan Calculator

Systematic Withdrawal Plan (SWP) is the reverse of SIP. Instead of investing regularly, you withdraw a fixed amount from your mutual fund investment at regular intervals — typically monthly.

SWP is ideal for retirees or anyone who needs regular income from their investment corpus. Your remaining investment continues to earn returns, making it more tax-efficient than Fixed Deposit interest.

Benefits of SWP

• Regular income — Fixed monthly cash flow
• Tax efficient — Only capital gains are taxed, not the full withdrawal
• Capital appreciation — Remaining corpus continues to grow
• Flexibility — Change withdrawal amount or stop anytime
• Better than FD — Higher returns with tax advantage

How much to withdraw?

The safe withdrawal rate is typically 3-4% of your corpus per year. If you withdraw less than your annual returns, your corpus actually grows over time.

Best Funds for SWP

• Balanced Advantage/Hybrid — Moderate risk, 8-10% returns
• Equity Savings — Low volatility, 7-9% returns
• Conservative Hybrid — Stable, 6-8% returns
• Short Duration Debt — Very stable, 6-7% returns

SWP Tax Advantage

In SWP, each withdrawal consists of principal + gains. Only the gains portion is taxed. For equity funds held over 1 year, LTCG above ₹1.25L is taxed at 12.5%. This makes SWP more tax-efficient than FD interest which is fully taxable.