💸 Free Online Tool · Mutual Fund SWP · FY 2025-26
SWP Calculator Online
Systematic Withdrawal Plan — Returns & Depletion
Calculate how long your mutual fund corpus lasts with a monthly SWP, how much you can safely withdraw without depleting capital, and your year-wise balance projection — free, instant.
💰 Basic SWP Calculator
Total Investment / Corpus
₹1L₹5Cr
Monthly Withdrawal
₹1K₹5L
Expected Annual Return
0%20%
Withdrawal Duration
1 Yr40 Yrs
Step-up withdrawal (inflation adj.)
Starting Corpus₹50,00,000
Total Withdrawn₹60,00,000
Returns Earned₹35,11,033
Remaining Balance₹25,11,033
Corpus lasts untilBeyond 20 yrs ✅
Remaining Balance
₹25.1L
after 20 years · ₹25,000/month
50%
Remaining
Starting Corpus₹50L
Total Withdrawn₹60L
Returns Earned₹35.1L
Balance Remaining₹25.1L
SWP Summary
Monthly withdrawal₹25,000/mo
Annual withdrawal₹3,00,000/yr
Withdrawal rate6.0% p.a.
Safe withdrawal?✅ Yes (≤ return rate)
📅 Year-wise SWP Balance Projection
| Year | Opening (₹) | Withdrawn (₹) | Returns (₹) | Closing (₹) | Status |
|---|
⚖️ SWP vs Dividend vs FD — Which Gives Better Monthly Income?
| Feature | SWP (Mutual Fund) | Dividend Option (MF) | FD Monthly Payout |
|---|---|---|---|
| Income Predictability | High (you set amount) | Unpredictable (fund decides) | High (fixed) |
| Capital Growth | ✅ Possible (if return > withdrawal) | ❌ Corpus erodes as dividends paid | ❌ Capital stays fixed |
| Tax on Income | LTCG/STCG on gains portion only | Taxable as income (slab rate) | Fully taxable at slab |
| Returns | Market-linked (8–14% hist.) | Market-linked | Fixed (7–7.5%) |
| Inflation Protection | ✅ High (equity growth) | Moderate | ❌ Low (fixed amount) |
| Flexibility | ✅ Change anytime | ❌ Cannot control amount | ❌ Fixed tenure lock-in |
| Liquidity | ✅ Full anytime | ✅ Full anytime | ❌ Penalty on early exit |
| Ideal For | Retirement income planning | Regular income (limited control) | Risk-averse, guaranteed income |
📐
How SWP Works
In a Systematic Withdrawal Plan, you invest a lump sum in a mutual fund and instruct the fund to redeem a fixed amount every month.
Month 1: Fund redeems units worth ₹X
Month 2: Remaining units grow at fund return
If fund return > withdrawal rate: Corpus grows
If fund return < withdrawal rate: Corpus depletes
Safe withdrawal rate: Keep annual withdrawal ≤ expected annual return %
Month 2: Remaining units grow at fund return
If fund return > withdrawal rate: Corpus grows
If fund return < withdrawal rate: Corpus depletes
Safe withdrawal rate: Keep annual withdrawal ≤ expected annual return %
💰
Tax on SWP Withdrawals
Each SWP redemption is treated as a mutual fund redemption — tax applies only on the capital gains portion, not the full withdrawal:
Equity Funds:
STCG (<12 months): 20%
LTCG (>12 months): 12.5% above ₹1.25L/yr
Debt Funds:
Added to income — taxed at slab rate (no LTCG benefit post Apr 2023)
Tip: Only gains part of each SWP is taxed, not the principal
STCG (<12 months): 20%
LTCG (>12 months): 12.5% above ₹1.25L/yr
Debt Funds:
Added to income — taxed at slab rate (no LTCG benefit post Apr 2023)
Tip: Only gains part of each SWP is taxed, not the principal
🎯
What is the Safe SWP Rate?
The "safe withdrawal rate" is the percentage of corpus you can withdraw annually without depleting it:
4% rule: Globally accepted for 30-year retirement
India context: With equity funds at 10–12% returns, you can safely withdraw 6–8% annually
Example: ₹1Cr corpus → withdraw ₹6–8L/yr (₹50K–₹67K/mo) safely
Step-up SWP: Increase withdrawal 5–10% annually to beat inflation
India context: With equity funds at 10–12% returns, you can safely withdraw 6–8% annually
Example: ₹1Cr corpus → withdraw ₹6–8L/yr (₹50K–₹67K/mo) safely
Step-up SWP: Increase withdrawal 5–10% annually to beat inflation
Frequently Asked Questions
SWP (Systematic Withdrawal Plan) lets you instruct a mutual fund to automatically redeem a fixed amount every month and credit it to your bank account. You invest a lump sum in a fund and set a monthly withdrawal — the fund redeems the equivalent units. If the fund's returns exceed your withdrawal rate, your corpus can actually grow while you receive monthly income.
SWP is generally better for retirement income. With dividend plans, the fund decides when and how much to pay — you cannot predict or control it. SWP gives you a fixed, predictable monthly income of your choosing. Taxation is also more efficient in SWP — only the capital gains portion of each withdrawal is taxed, while dividends are fully taxable at slab rates.
Each SWP withdrawal is treated as a partial redemption of mutual fund units. Tax applies only on the capital gains portion (not the principal). For equity funds: Short-term capital gains (held <12 months) are taxed at 20%; Long-term capital gains (held >12 months) are taxed at 12.5% above ₹1.25 lakh per year. Debt fund gains are added to income and taxed at slab rate. A TAXAJ CA can help you optimise your SWP strategy for tax efficiency.
The globally accepted "4% rule" suggests withdrawing 4% of your corpus annually for a 30-year retirement. In India, with balanced or equity mutual funds historically returning 10–12% p.a., a withdrawal rate of 6–8% annually is generally considered safe — meaning the corpus remains stable or grows. This translates to ₹50,000–₹67,000/month from a ₹1 crore corpus.
For long-term SWP (10+ years), balanced advantage funds or hybrid equity funds are popular — they offer growth potential with lower volatility than pure equity. For shorter durations, debt hybrid or conservative hybrid funds reduce risk. Avoid high-risk sectoral funds for SWP. Always consult a CA or investment advisor to match the fund to your income need and risk profile. Talk to TAXAJ →
When the corpus value falls below the monthly withdrawal amount, the fund will make a final partial redemption and the SWP stops automatically. To avoid corpus exhaustion: (1) Keep withdrawal rate below expected return rate, (2) Use a step-up SWP (increase withdrawal by inflation rate each year), (3) Start with a larger corpus, or (4) Reduce the monthly withdrawal amount.
Yes — many investors use a SIP to accumulate during the working years and then switch to SWP at retirement. You can also run both simultaneously in different funds (e.g., continue SIP in an equity fund while running SWP from a balanced fund). This strategy is called the "SIP-to-SWP bridge" approach and is popular for retirement planning in India.
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Need Help with SWP Tax Planning or ITR Filing?
TAXAJ's CA team helps you calculate LTCG/STCG on SWP redemptions, claim exemptions and file your ITR accurately — maximising post-tax income from your investments.