SWP Calculator India 2026
Plan your Systematic Withdrawal Plan from mutual funds. Calculate how long your corpus will last with regular monthly withdrawals while your remaining investment continues to earn returns.
SWP Details
Sustainable Withdrawal
Your corpus will last 20+ years with ₹1.39Cr remaining.
💡 Perpetual Withdrawal Rate
Maximum monthly withdrawal that preserves your principal:
At 10% annual returns, withdrawing only the interest keeps your principal intact indefinitely.
Corpus Balance Over Time
Corpus Utilization
SWP vs Fixed Deposit for Regular Income
| Parameter | SWP (Mutual Fund) | FD Interest Payout |
|---|---|---|
| Expected Returns | 8-12% (market-linked) | 6-7.5% (fixed) |
| Taxation | Only gains taxed (LTCG 10%) | Full interest at slab rate |
| Withdrawal Flexibility | Change amount anytime | Fixed tenure |
| Capital Preservation | Market risk | Guaranteed principal |
| Inflation Beating | Yes (post-tax ~8-10%) | No (post-tax ~4-5%) |
How SWP Works - Step by Step
Invest Lump Sum
Put your corpus in a mutual fund (balanced or equity)
Set SWP
Choose withdrawal amount and frequency (monthly)
Units Redeemed
Fund house sells units equal to withdrawal amount
Balance Grows
Remaining units continue earning market returns
Best Fund Categories for SWP
For Conservative Investors
- • Balanced Advantage Funds (BAF)
- • Equity Savings Funds
- • Conservative Hybrid Funds
For Growth-Oriented Investors
- • Large Cap Funds
- • Flexi Cap Funds
- • Index Funds (Nifty 50, Sensex)
What is Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) is a facility that allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (usually monthly). It's the opposite of a SIP - instead of adding money systematically, you're taking it out systematically.
The beauty of SWP lies in how it works: when you withdraw ₹30,000, the mutual fund house doesn't give you cash from a separate account. Instead, it redeems units worth ₹30,000 at the current NAV. Your remaining units continue to earn market returns, potentially growing your corpus even as you withdraw.
SWP Example: How It Actually Works
Initial Investment
- Corpus: ₹50,00,000
- NAV at purchase: ₹100
- Units owned: 50,000 units
After 1 Year (10% return, ₹30K/month SWP)
- NAV increased to: ₹110
- Units redeemed: ~3,273 units
- Withdrawn: ₹3,60,000
- Balance: ~₹51,40,000
💡 Despite withdrawing ₹3.6 lakhs, your corpus grew by ₹1.4 lakhs because returns (10%) exceeded withdrawal rate (~7.2%)
SWP Tax Advantage Over FD Interest
SWP is significantly more tax-efficient than FD interest, especially for those in higher tax brackets. Here's why:
FD Interest - Fully Taxable
- • FD of ₹50 lakh at 7% = ₹3.5L interest/year
- • If in 30% tax bracket = ₹1.05L tax
- • Net income = ₹2.45 lakh (4.9% effective)
- • TDS of ₹35,000 deducted at source
SWP from Equity MF - Partly Taxable
- • SWP of ₹3.6L/year (₹30K/month)
- • Assume 50% is capital, 50% is gain
- • Tax: Only ₹1.8L gains × 10% = ₹18,000
- • Net income = ₹3.42 lakh (6.8% effective)
| Tax Bracket | FD Net Return (7% gross) | SWP Net Return (10% gross) | Extra Income with SWP |
|---|---|---|---|
| 5% slab | 6.65% | 9.5% | +2.85% |
| 20% slab | 5.6% | 9% | +3.4% |
| 30% slab | 4.9% | 9% | +4.1% |
| Senior Citizen (exemption) | 6.65% (₹50K exempt) | 9.5% | +2.85% |
Safe Withdrawal Rates: How Much Can You Withdraw?
The "safe withdrawal rate" tells you how much you can withdraw annually without depleting your corpus too quickly. The famous 4% Rule from US studies suggests 4% annually, but Indian markets have different dynamics.
| Withdrawal Rate | Monthly (₹1 Cr corpus) | Sustainability | Best For |
|---|---|---|---|
| 3% (Conservative) | ₹25,000/month | 40+ years (perpetual) | Early retirees (40s), legacy planning |
| 4% (Standard) | ₹33,333/month | 30+ years | Traditional retirement (60+) |
| 5% (Moderate) | ₹41,667/month | 25 years | Late retirement (65+) with other income |
| 6% (Aggressive) | ₹50,000/month | 18-20 years | 70+ with pension backup |
| 8%+ (Risky) | ₹66,667+/month | 10-12 years | Not recommended for primary income |
💡 Rule of thumb: Your SWP rate should be less than your expected returns minus inflation. If fund returns 10% and inflation is 6%, safe rate is ~4%.
Real-World SWP Scenarios
Retired Bank Manager
Age 60, Corpus ₹80 lakhs
FIRE Retiree
Age 45, Corpus ₹2.5 Crore
Working Professional (Part-time Income)
Age 55, Corpus ₹40 lakhs
Risky Scenario (Avoid This)
Age 60, Corpus ₹30 lakhs
SWP vs Other Retirement Income Options
| Feature | SWP | SCSS | PMVVY | FD Interest |
|---|---|---|---|---|
| Interest/Return Rate | 8-12% (variable) | 8.2% (fixed) | 7.4% (fixed) | 6-7% (fixed) |
| Tax Treatment | Only gains taxed | Interest taxable | Interest taxable | Fully taxable |
| Flexibility | Change anytime | Quarterly only | Fixed monthly | Fixed tenure |
| Capital Safety | Market risk | Govt guaranteed | Govt guaranteed | DICGC insured |
| Inflation Protection | Yes (equity growth) | No | No | No |
| Best For | Long retirement, wealth growth | Safe quarterly income | 80+ age, guaranteed | Emergency fund only |
💡 Pro Tip: Most financial planners recommend a bucket strategy: keep 2 years expenses in liquid funds, next 3-5 years in debt/balanced funds, and rest in equity for long-term growth.
Frequently Asked Questions
What is SWP in mutual funds?
How is SWP taxed in India?
Is SWP better than FD for retirement income?
What happens if markets fall during my SWP?
What is a safe withdrawal rate for retirement?
Can I change my SWP amount?
Which mutual fund is best for SWP?
How much corpus do I need for ₹50,000/month SWP?
Can NRIs set up SWP in India?
Should I use SWP or dividend option for regular income?
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