SWP Calculator — Plan Your Monthly Income from Mutual Funds
SWP (Systematic Withdrawal Plan) lets you convert your mutual fund corpus into regular monthly cash flow — perfect for retirees or anyone living off investments. This calculator shows how long your corpus will last at a given withdrawal rate and what balance remains at the end.
SWP Calculator
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About the Author
Mithun Srivastava is the founder of InvestWithMithun.com, a free stock market education platform for Indian investors. With a passion for making finance accessible to everyone, Mithun creates practical guides, calculators, and glossary resources to help beginners start their investing journey with confidence.
What Is SWP?
A Systematic Withdrawal Plan is the opposite of a SIP. Instead of investing a fixed amount every month, you withdraw a fixed amount from your mutual fund corpus every month. The remaining investment continues to earn returns, so your corpus depletes slower than you would think.
How the SWP Calculator Works
Enter total corpus, monthly withdrawal amount, expected annual return (8–10% for balanced portfolios), and optional inflation adjustment. Calculator shows how many years the corpus will last and running balance.
Example: ₹1 Crore Corpus, ₹50,000 Monthly SWP, 10% Returns
- Starting corpus: ₹1,00,00,000
- Monthly withdrawal: ₹50,000 (₹6 lakh/year)
- Expected return: 10%
- Corpus lasts: 30+ years
- Even after 20 years of withdrawals, balance is still ~₹1.2 Cr
The magic of SWP: as long as your withdrawal rate is lower than your return rate, the corpus can last indefinitely.
The 4% Rule — Adapted for India
- Conservative retirement: 3–4% annual withdrawal
- Moderate retirement: 5–6% annual withdrawal
- Aggressive: 7%+ — high risk of running out of money
With a ₹1 Cr corpus, safe monthly income = ₹25,000–₹40,000.
When SWP Makes Sense
- Retirement income — biggest use case
- Sabbatical or career break
- Parent supporting children abroad
- Tax-efficient income (LTCG often lower than slab rate)
SWP Tax Efficiency Explained
Each SWP withdrawal is treated as a partial redemption. For an equity fund held over 12 months: only the gain portion is taxed at 12.5% LTCG (above ₹1.25 lakh/year exemption). Principal portion is tax-free. No TDS on SWPs (unlike FDs).
Mistakes to Avoid with SWP
- Starting SWP too early — if still earning, keep investing
- Withdrawing from equity during a crash — switch to debt fund temporarily
- Not inflating withdrawal — ₹50K today needs to become ₹80K in 10 years
- Ignoring asset allocation — retirees should be 60/40 equity/debt
- Drawing from ELSS during 3-year lock-in
Frequently Asked Questions
How is SWP different from dividend option of mutual funds?
SWP: you decide when and how much to withdraw. Dividends: the fund decides. SWP is more predictable and tax-efficient post-2020.
What is the best mutual fund for SWP?
Balanced advantage, large-cap, or equity hybrid funds work well. Avoid pure small-cap funds. For retirees, 60% hybrid + 40% debt is a sensible mix.
Is SWP taxable?
Yes. Equity funds: 12.5% LTCG on gains above ₹1.25 lakh per year. Debt funds (post April 2023): slab rate. Only the gain portion of each withdrawal is taxed.
Can I change my SWP amount?
Yes. Most AMCs allow you to increase, decrease, pause, or stop your SWP anytime — no penalty.
Will my corpus last forever?
Only if your annual withdrawal rate is lower than return rate minus inflation. At 10% return and 6% inflation, 3–4% annual withdrawal can last forever.
SWP vs FD monthly interest?
SWP from a balanced fund usually beats FD interest over 5+ years due to higher returns and LTCG tax efficiency. FD wins for guaranteed income.
Can I do SWP and SIP in the same fund?
Yes technically, but it defeats the purpose. Better to keep SIPs in growth funds and SWP from matured funds.
Minimum amount for SWP?
Most AMCs allow minimum SWP of ₹500 or ₹1,000 per month. Some require a minimum corpus of ₹25,000.