SWP Calculator
A Systematic Withdrawal Plan (SWP) allows investors to redeem a specified amount from their mutual fund scheme on a monthly basis, creating a regular income stream suitable for retirees.
Input Calculation Parameters
₹
₹
%
Years
Calculation Results
Total Capital Withdrawn
0
Remaining Corpus Balance
0
How the Calculation Works
Iteratively deducts monthly payouts while growing the remaining balance at monthly compounded rates.
Worked Example
Here is a step-by-step example calculation for ₹50 Lakh Corpus, ₹35,000 Monthly SWP @ 9% p.a. for 15 Years:
| Parameter | Value |
|---|---|
| Corpus | ₹50,00,000 |
| Total Withdrawn | ₹63,00,000 |
| Remaining Balance | ₹48,12,000+ |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| Safe Rate (6%-8% Withdrawal) | Outcome: Corpus lasts indefinitely. |
| Excessive Rate (>12% Withdrawal) | Outcome: Corpus gets depleted rapidly. |
Common Mistakes to Avoid
- Setting monthly withdrawal rate higher than expected fund return rate.
Frequently Asked Questions (FAQs)
Is SWP better than dividend option?
Yes, SWP offers superior tax efficiency because only the capital gain portion of each redemption is taxed.
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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