SWP Calculator

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals. It is essentially the reverse of a SIP — instead of investing periodically, you redeem periodically from an existing corpus.

SWP is popular among retirees and individuals seeking regular income from their investments while keeping the remaining corpus invested for potential growth.

When you set up an SWP, mutual fund units are redeemed each month (or at your chosen frequency) to provide you the withdrawal amount. The remaining units continue to earn returns based on the fund's performance.

• Units redeemed: Only enough units to cover your withdrawal are sold each period
• Remaining corpus: Continues to be invested and can grow
• Flexible frequency: Monthly, quarterly, or semi-annual withdrawals

The remaining corpus after each withdrawal is calculated as:

Remaining = Previous Balance × (1 + r) - W

• r = Periodic rate of return
• W = Withdrawal amount per period

The total duration your corpus lasts depends on the withdrawal rate versus the growth rate. If withdrawals exceed growth, the corpus will eventually deplete.

• Step 1: Enter your total investment corpus (e.g., ₹50,00,000)
• Step 2: Specify the monthly withdrawal amount you need (e.g., ₹30,000)
• Step 3: Set the expected annual return on the remaining investment
• Step 4: View how long your corpus will last and the total amount withdrawn

• Regular Income: Provides a steady cash flow similar to a pension
• Tax Efficiency: Only the capital gains portion of each withdrawal is taxable, not the full amount
• Corpus Growth: Remaining investment continues to earn returns
• Flexibility: Adjust withdrawal amounts or stop at any time