SWP Calculator
Systematic Withdrawal Plan calculator for monthly passive income.
About the SWP Calculator
The SWP Calculator models a Systematic Withdrawal Plan — the reverse of a SIP — that lets your retirement corpus deliver a monthly pension while the remaining balance continues to compound. SWP is the standard mechanism Indian retirees use to draw income from mutual fund corpora in a tax-efficient way, because each withdrawal triggers LTCG on only the gains portion, not the entire amount.
How the SWP Calculator works
- Enter your starting corpus, the monthly withdrawal you want, the expected return on the remaining balance and the duration.
- The calculator deducts your withdrawal each month and grows the remainder at the assumed CAGR.
- It shows how many years the corpus lasts and the residual balance at the end of the period.
- Run scenarios with different withdrawal amounts to find a sustainable rate.
Inputs explained
Formula
Each month: balance = (previous balance − withdrawal) × (1 + monthly return) Corpus lasts until balance ≤ 0.
Worked example
A ₹1 Cr corpus drawing ₹50,000/month at 8% return lasts roughly 30 years — a 6% withdrawal rate. Drop the withdrawal to ₹40,000 and the corpus lasts indefinitely.
India-specific notes
- •Only the capital-gains portion of each SWP withdrawal is taxable — typically 70-85% of withdrawals in early years are tax-free principal.
- •Equity funds: LTCG 12.5% above ₹1.25L/year on gains. Debt funds (post 1 Apr 2023): full slab-rate tax.
- •Hybrid (aggressive) funds with >65% equity get equity taxation — popular for SWP.
- •SWP is more tax-efficient than dividend plans — dividends are taxed at slab rate without indexation.
Tips to maximise this calculator
- →Use a 3-bucket approach: 2 years' withdrawals in liquid funds, 3-5 years in hybrid, rest in equity.
- →Skip SWP during the first year of a market crash — withdraw from the liquid bucket instead.
- →Increase your SWP by 6% annually to maintain real purchasing power against inflation.
Common mistakes to avoid
- ✕Picking too high a withdrawal rate — anything above 6% on a 30-year horizon risks running out.
- ✕Drawing from equity in a bear market — locks in losses via sequence-of-returns risk.
- ✕Confusing SWP with dividend option — dividends are riskier from a tax angle.
Glossary
- SWP
- Systematic Withdrawal Plan — auto-redemption of fund units to a bank account monthly.
- Bucket strategy
- Splitting corpus by liquidity need to manage withdrawal risk.
- Sequence risk
- Poor early-retirement returns disproportionately damage corpus longevity.
- Cost basis
- Original purchase price used to compute capital gains on each redemption.
Frequently asked questions
Is the SWP Calculator free to use?
Yes. The SWP Calculator is free, runs in your browser and never stores personal data.
Are the assumptions India-specific?
Yes. We use INR, Indian inflation and India-specific rates (PPF, EPF, FY 2026-27 tax slabs where applicable).
Is this investment advice?
No. This tool is for education. Consult a SEBI registered advisor before investing.