SWP Planner

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₹50K ₹10 Cr
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₹500 ₹10L
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1 Yr 40 Yrs

How Systematic Withdrawal Plans Work

An SWP allows you to withdraw a fixed amount regularly from your total mutual fund investments. This is a common strategy to generate a steady monthly income post-retirement.

Note: If your withdrawal amount is higher than the interest generated, your principal corpus will deplete over time.

Final Value

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Corpus lasts full duration

Total Investment

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Total Withdrawal

₹0

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The Power of Systematic Withdrawal Plans (SWP)

A Systematic Withdrawal Plan (SWP) in mutual funds is the exact opposite of a Systematic Investment Plan (SIP). Instead of investing a fixed amount regularly, you invest a lump sum and withdraw a fixed amount regularly (e.g., monthly). This acts as a reliable source of regular income from your investments.

How to use this SWP Calculator?

  • Enter Total Investment: Input the initial lump sum amount you have saved or plan to invest.
  • Withdrawal per month: State the fixed cash you wish to withdraw automatically every month.
  • Expected Return Rate (p.a): Enter a realistic annual return percentage that the invested fund is expected to yield.
  • Time Period: Input how many years you want to continue this withdrawal.
  • View Results: The calculator immediately updates to show you your "Total Withdrawal" over the time period along with the "Final Value" remaining in your corpus.

Advantages of SWP

  • Consistent Income: Ideal for retirees seeking a predictable cash flow.
  • Tax Efficiency: SWP is very tax-efficient compared to Fixed Deposit interest because every withdrawal consists of both principal and capital gains, meaning tax is only applicable on the small portion of gains.
  • Continued Growth: The remainder of your corpus continues to grow and stay invested in the market.
  • Rupee Cost Averaging on Withdrawals: By redeeming fewer units when markets are high and more units when markets are low to fulfill the fixed cash need.

Common FAQs

What happens if my withdrawal is too high?

If the sum of your withdrawals outpaces the returns generated, your initial principal amount will begin to deplete. The calculator will indicate if your fund is projected to run out completely before your selected time period ends.

Who should use an SWP?

SWPs are extremely useful for retirees or individuals looking to achieve Financial Independence (FIRE) by generating passive income from their long-term saving corpus.