SWP calculator
An SWP calculator (systematic withdrawal plan calculator) is an online tool that helps you calculate the amount that you may withdraw regularly while also viewing the impact on the remaining corpus.
SWP calculator: This is a product available in mutual funds that gives an investor the option to withdraw a fixed amount at periodic intervals (monthly, quarterly, annually) from the amount invested. Unlike a lump sum withdrawal, it simply provides a steady source of income and makes it easier to plan your finances, particularly if you’re retired or need money regularly.
SWP Calculator
Plan your financial withdrawals with precision for Indian investments
Investment Parameters
Advanced Settings
Total Investment
₹10,00,000
Total Withdrawal
₹6,00,000
Total Interest Earned
₹4,52,371
Calculation Results
Investment Value Over Time
Withdrawals vs Interest Earned
Asset Composition
Investment Analysis
- Initial Investment ₹10,00,000
- Initial Monthly Withdrawal ₹5,000
- Final Monthly Withdrawal ₹5,000
- Financial Independence Ratio 83.5%
Tax Considerations
In India, tax implications on SWP depend on the asset class and holding period:
Equity Mutual Funds
- Short-term capital gains (STCG): Held for less than 12 months, taxed at 15%
- Long-term capital gains (LTCG): Held for more than 12 months, taxed at 10% without indexation for gains over ₹1 lakh
Debt Mutual Funds
- Short-term: Held for less than 36 months, taxed as per income tax slab
- Long-term: Held for more than 36 months, taxed at 20% with indexation benefit
Detailed Withdrawal Schedule
| Year | Opening Balance | Annual Withdrawal | Interest Earned | Closing Balance | Tax Paid |
|---|
About SWP in India
A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals. It's particularly useful for:
- Creating a regular income stream, especially during retirement
- Managing cash flows for recurring expenses
- Tax-efficient withdrawals through capital gains optimization
Tips for Effective SWP Planning
- Consider increasing withdrawal amounts annually to counter inflation
- Opt for equity funds for long-term SWPs and debt funds for short-term needs
- Keep emergency funds separate from your SWP investments
- Review and rebalance your portfolio periodically to maintain target asset allocation
This calculator is for illustrative purposes only and not a guarantee of future returns.
Tax laws are subject to change. Please consult a tax advisor for personalized advice.
SWP Calculator helps you plan this Withdrawal by projecting:
✅ How long your investment will last at a given withdrawal rate
✅ The remaining balance after a set period
✅ The effect of assumed rate of return on the fund
✅ Total withdrawals over time
How Does an SWP Calculator Work?
The SWP Calculator works on a simple principle:
- You enter your initial investment (corpus).
- Choose withdrawal amount and frequency (monthly is most common).
- Enter the expected annual rate of return (growth rate of the mutual fund).
- Select the time over which you want to withdraw.
Benefits of Using an SWP Calculator
- Income Planning – Perfect for retirees needing predictable cash flow.
- Corpus Preservation – Helps avoid exhausting savings too quickly.
- Scenario Testing – Try different return rates, withdrawal amounts.
- Tax Planning – SWP withdrawals from equity funds are treated as capital gains and can be tax-efficient compared to interest income.
Features of a Good SWP Calculator
- Easy, user-friendly interface
- Allows monthly/quarterly/annual withdrawal frequency
- Option to set rate of return
- Graphical view of corpus reduction over time
- Ability to simulate multiple scenarios.
Who Can Use an SWP Calculator?
- Retirees planning a pension-like income.
- Investors want regular cash flow without selling entire holdings at once.
- Anyone wanting to plan for expenses like children’s education or EMI payments from their investments.
- Financial advisors help clients set up sustainable withdrawal plans.