SWP Calculator

SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount regularly (usually monthly) from your mutual fund investments. The amount is automatically credited to your bank account, while the remaining corpus continues to stay invested and grow. This creates a regular income stream while maintaining your investment portfolio.

The minimum withdrawal amount varies by mutual fund house and scheme, but typically ranges from ₹500 to ₹1,000 per month. Some funds may have higher minimums. Check with your fund house or financial expert for specific requirements.

SWP returns are calculated by tracking how your corpus changes over time. Each month, your corpus grows by the expected return rate, then decreases by the withdrawal amount. The calculator projects this month-by-month to show your final corpus after the withdrawal period. The actual returns depend on the fund's performance.

SWP offers several advantages over lump sum withdrawal: it provides regular income, keeps your remaining corpus invested and growing, can be more tax-efficient (especially for long-term capital gains), and helps maintain financial discipline. Lump sum withdrawal is better if you need the entire amount immediately.

Yes, most SWPs offer flexibility. You can pause, modify the withdrawal amount, change the frequency, or stop your SWP at any time. However, maintaining consistency helps with financial planning. Some fund houses may have specific terms, so check with your provider.

Returns depend on the type of mutual fund you've invested in. Equity funds historically have provided 10-15% annual returns over long periods, but are subject to market volatility. Debt funds typically offer 6-8% returns with lower risk. The actual returns will affect how long your corpus lasts and how much remains after withdrawals.

The duration depends on your financial goals. For retirement income, SWPs can run for 20-30 years or more. For specific goals like children's education, you might run it for 5-10 years. The key is ensuring your withdrawal rate is sustainable and your corpus doesn't deplete too quickly.

SWP withdrawals are not tax-free. The tax treatment depends on the type of fund and holding period. For equity funds, long-term capital gains (held over 1 year) are taxed at 10% above ₹1 lakh, while short-term gains are taxed at 15%. For debt funds, long-term gains (held over 3 years) are taxed at 20% with indexation, while short-term gains are added to your income. Each withdrawal is treated as a partial redemption.

If your withdrawal rate is too high relative to returns, your corpus may deplete before the planned tenure. The calculator will warn you if this scenario is likely. To prevent this, consider reducing your monthly withdrawal amount, increasing your initial investment, or choosing investments with higher expected returns (though this increases risk).

Yes, you can have multiple SWPs from different mutual fund schemes. This helps diversify your income sources and manage different financial goals separately. Many investors maintain SWPs from equity funds, debt funds, and hybrid funds simultaneously to balance risk and returns.

SWP involves withdrawing from your principal investment, reducing your corpus over time. Dividend payout provides income from the fund's earnings without reducing your principal (though dividends are not guaranteed). SWP gives you more control over withdrawal amounts and timing, while dividends depend on the fund's performance and distribution policy.

Yes, SWP is an excellent tool for retirement planning. It provides a regular income stream during retirement while keeping your remaining corpus invested and growing. However, it's crucial to ensure your withdrawal rate is sustainable. A common rule of thumb is to withdraw no more than 4-5% of your corpus annually to ensure it lasts throughout retirement.