SWP (Systematic Withdrawal Plan) Calculator
Plan your systematic withdrawals
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Create a regular income stream from your investments
A 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. It's an excellent tool for retirees or anyone seeking regular income from their investments while keeping the remaining corpus invested and growing.
Regular Income
Fixed monthly income for expenses and lifestyle
Corpus Growth
Remaining investment continues to earn returns
Tax Efficient
Only capital gains portion is taxable
SWP vs Other Income Options
Compare different ways to generate regular income
| Feature | SWP | Dividends | FD Interest |
|---|---|---|---|
| Income Predictability | Fixed & Predictable | Variable | Fixed |
| Tax Efficiency | High (only gains taxed) | Low (fully taxable) | Low (fully taxable) |
| Flexibility | High | Medium | Low |
| Growth Potential | High | High | Limited |
Understanding Safe Withdrawal Rate
The key to making your money last a lifetime
The widely accepted safe withdrawal rate
What is the 4% Rule?
The 4% rule suggests that you can withdraw 4% of your corpus annually (adjusted for inflation) with high confidence that your money will last 30+ years. This is widely used for retirement planning.
Example Calculation
- •Corpus: ₹1 Crore
- •Annual Withdrawal (4%): ₹4,00,000
- •Monthly Income: ₹33,333
Frequently Asked Questions
Common questions about SWP
What is a Systematic Withdrawal Plan (SWP)?
SWP allows you to withdraw a fixed amount from your mutual fund investment at regular intervals. It's ideal for creating regular income during retirement while keeping your money invested.
How is SWP taxed in India?
In SWP, only the capital gains portion of each withdrawal is taxable, not the principal. For equity funds held over 1 year, LTCG above ₹1 lakh is taxed at 10%. This makes SWP more tax-efficient than dividends or FD interest.
Can I start SWP immediately after investing?
Yes, you can start SWP anytime. However, for equity funds, it's advisable to wait for at least 1 year to qualify for long-term capital gains tax benefits. You can also lock-in period requirements if investing through ELSS.
What happens if my withdrawal exceeds returns?
If your withdrawal rate exceeds investment returns, your corpus will deplete over time. Our calculator helps you find the sustainable withdrawal rate that balances income needs with corpus preservation.
Which funds are best for SWP?
For regular income, balanced advantage funds or conservative hybrid funds are popular choices. They offer moderate growth with lower volatility. Pure debt funds suit those seeking stable, low-risk income.
Pro Tips for SWP Planning
Maximize your retirement income sustainably
Buffer Fund Strategy
Keep 2-3 years of expenses in liquid funds. Draw SWP from liquid fund while equity corpus grows during bull markets.
Balance Equity & Debt
Maintain a balanced portfolio (60% equity, 40% debt) for retirees. This provides growth with stability for sustainable withdrawals.
Review Annually
Review your SWP amount annually. Adjust withdrawals based on corpus value, inflation, and changing needs to stay sustainable.