SWP Calculator India (2026)
Plan systematic withdrawals from your mutual fund investments while keeping your corpus growing.
SWP Details
See real purchasing power of corpus
💡 Pro Tips
- ✓Withdraw only returns, keep capital intact
- ✓Enable inflation toggle to see real purchasing power
- ✓Tax-efficient compared to FD interest
Safe Monthly Withdrawal (corpus stays intact): ₹10,000/month
Formula: ₹10.0 L × 1.00% monthly rate = ₹10,000/month
Important Disclaimer
SWP returns are market-linked. Actual returns may vary. If withdrawal exceeds returns, your corpus will deplete faster.
What is SWP?
Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from your mutual fund investment. It's ideal for retirees needing regular income while keeping the remaining corpus invested.
How is SWP Calculated? The Formula Explained
The math behind systematic withdrawals
SWP Formula
A = PMT × [(1+r)^n − 1] / r × (1+r)📊 Worked Example
Rahul invests ₹10,00,000 at 12% annual return and withdraws ₹10,000/month. Monthly rate = 12/12/100 = 1%. After 20 years (240 months), his final corpus = ₹10,00,000 × (1.01)^240 − ₹10,000 × [(1.01)^240 − 1] / 0.01 = approximately ₹73,00,000.
His ₹10L grew to ₹73L while he withdrew ₹10,000 every month for 20 years — total withdrawal of ₹24 lakh.
Year-wise SWP (Default: ₹10L @ 12% / ₹10K withdrawal)
| Year | Opening Balance | Withdrawn | Returns Earned | Closing Balance |
|---|---|---|---|---|
| 1 | ₹10,00,000 | ₹1,20,000 | ₹1,18,732 | ₹9,98,732 |
| 2 | ₹9,98,732 | ₹1,20,000 | ₹1,18,571 | ₹9,97,303 |
| 3 | ₹9,97,303 | ₹1,20,000 | ₹1,18,390 | ₹9,95,692 |
| 4 | ₹9,95,692 | ₹1,20,000 | ₹1,18,185 | ₹9,93,878 |
| 5 | ₹9,93,878 | ₹1,20,000 | ₹1,17,955 | ₹9,91,833 |
Showing years 1–5. Use the calculator above to see all 20 years interactively.
SWP vs FD vs Annuity: Which Gives Better Retirement Income?
| Option | Monthly Income (₹10L) | Tax Treatment | Corpus after 20yr |
|---|---|---|---|
| SWP at 12% | ₹10,000 | LTCG 10% on gains only | ₹73L+ intact |
| FD at 7% | ₹5,833 | Full slab rate annually | ₹0 (depleted) |
| Annuity at 6% | ₹5,000 | Full slab rate | ₹0 (no return) |
For investors in the 20–30% tax bracket, SWP from an equity mutual fund generates nearly 2× more post-tax monthly income than a fixed deposit on the same corpus, while keeping the principal intact.
SWP Tax Treatment in India (2026)
Each SWP redemption is split into principal and gains. Only the gains portion is taxable. For equity funds held over 1 year: LTCG above ₹1 lakh taxed at 10%. For debt funds: taxed at income slab rate.
Example: If you withdraw ₹10,000 and ₹3,000 is gains, only ₹3,000 is taxable — not ₹10,000. Compare this to FD interest where the full ₹5,833 interest is added to income and taxed at your slab rate.
Who Should Use SWP?
✅ Suitable for:
⚠️ NOT suitable for:
SWP Calculator — Frequently Asked Questions
What is a safe SWP withdrawal rate in India?
0.8–1% monthly (9.6–12% annually) is generally considered safe if the corpus earns 12–14% in diversified equity. At 1% monthly withdrawal, ₹10 lakh corpus supports ₹10,000/month withdrawal indefinitely.
Can SWP corpus run out?
Yes — if withdrawal exceeds returns, the corpus depletes over time. Our calculator shows the exact depletion date based on your inputs. Use the depletion warning feature above to check your sustainability.
Is SWP better than FD for retirement?
For investors in the 20–30% tax bracket, yes — significantly more tax-efficient and higher income. FD interest is taxed at your full slab rate; SWP gains are taxed at 10% LTCG on only the gains portion.
What is the minimum corpus for SWP?
For ₹10,000/month sustainable withdrawal at 12% return, minimum corpus = ₹10,00,000. The formula is: Minimum Corpus = Monthly Withdrawal ÷ Monthly Return Rate.
How is SWP different from dividend option?
SWP gives you control over amount and timing. Dividends are at the AMC's discretion and taxed at your full income slab rate. SWP from equity funds held over 1 year is taxed at 10% LTCG on gains only — giving you both control and tax efficiency.
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