SWP Calculator
Plan systematic withdrawals from your corpus
What is a SWP Calculator?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund corpus every month — essentially creating a regular income stream from your investments. This calculator shows you how long your corpus will last at a given withdrawal rate, or how much you can withdraw monthly to make it last a specific number of years.
SWP is widely used for retirement income, supplementing salary, or funding regular expenses from an investment. The key insight is that your remaining corpus continues to earn returns, so well-planned SWP withdrawals can sustain you far longer than simple division would suggest.
When to Use This Calculator
- Planning retirement income — how much can I withdraw monthly from my ₹1 crore corpus
- Checking if a corpus of ₹50 lakh can sustain ₹30,000/month withdrawals for 25 years
- Comparing SWP from mutual funds vs monthly FD interest for regular income
- Planning sabbatical or career break funding from existing investments
- Seeing the impact of different withdrawal rates on corpus longevity
Key Terms
Frequently Asked Questions
How much can I withdraw monthly without depleting my corpus?+
If your corpus earns 8-10% annually, withdrawing about 6-7% annually (or about 0.5% monthly) should preserve the corpus indefinitely. For a ₹1 crore corpus at 10% return, ₹50,000-60,000/month keeps the corpus stable. Withdrawing more will gradually deplete it.
Is SWP better than FD interest for monthly income?+
Often yes. SWP from an equity fund (12% return) can give higher monthly income than FD interest (7%) from the same corpus, and is more tax-efficient — equity LTCG is taxed at 12.5% vs FD interest at your slab rate (up to 30%). However, SWP from equity has market risk.
How is SWP taxed?+
Each SWP withdrawal is a partial redemption of mutual fund units. Only the capital gains portion (not the full amount) is taxed. For equity funds held >1 year, LTCG above ₹1.25L/year is taxed at 12.5%. This makes SWP significantly more tax-efficient than FD interest.
What if the market crashes during my SWP?+
This is the sequence-of-returns risk. A market crash early in your SWP can permanently damage your corpus because you're selling units at low prices. Mitigation: keep 2-3 years of expenses in a liquid/debt fund and switch SWP source during market downturns.