SWP Calculator Systematic Withdrawal Plan
Plan your regular withdrawals from a mutual fund corpus — see how long your investment lasts, the total returns earned, and your final balance.
What Is a Systematic Withdrawal Plan?
An SWP lets you redeem a fixed amount from a mutual fund at regular intervals — monthly, quarterly, half-yearly, or yearly. The fund redeems just enough units to fund each payout; the rest stays invested. When the portfolio earns more than you withdraw each period, the corpus can actually grow over time rather than shrink.
How the SWP Calculation Works
The calculator simulates your portfolio month by month. Each month, the current balance earns a return at the annualised rate you specify. If a withdrawal is due that period (based on your chosen frequency), it is deducted from the running balance. The output — total withdrawals, total returns, and the final corpus — reflects this compounding-and-withdrawal interplay across your full tenure.
Choosing the Right Withdrawal Frequency
| Frequency | Best For | Cash-Flow Regularity | Growth Potential |
|---|---|---|---|
| Monthly | Regular monthly income — rent, EMIs, household bills | Highest | Lower |
| Quarterly | Periodic expenses — school fees, insurance premiums | Moderate | Moderate |
| Half-Yearly | Planned lump-sum needs — travel, home maintenance | Lower | Higher |
| Yearly | Annual cash needs — tax payments, large purchases | Lowest | Highest |
Worked Example — 12 Monthly Withdrawals
Start with ₹1,20,000 at 7% p.a. and withdraw ₹10,000 each month. Month 1: the corpus earns roughly ₹700 in interest (7% ÷ 12), bringing the balance to ₹1,20,700 before the withdrawal. After deducting ₹10,000 the closing balance is ₹1,10,700. This process repeats each month — each opening balance is smaller, so the interest earned also declines. By Month 12 the remaining balance is approximately ₹4,026, confirming that at 7% the corpus depletes well within a year at this withdrawal rate.
SWP vs SCSS vs Fixed Deposit
| Feature | SWP (Mutual Fund) | Senior Citizen Savings (SCSS) | Fixed Deposit (FD) |
|---|---|---|---|
| Returns | Market-linked, variable | Fixed, government-set | Fixed, bank-set |
| Risk | Moderate | Very low | Very low |
| Withdrawal frequency | Your choice | Quarterly only | Depends on type |
| Capital safety | Not guaranteed | Fully safe | Fully safe |
| Liquidity | High — no lock-in | Limited — 5-year lock-in | Medium — exit penalty applies |
| Tax treatment | Capital gains (LTCG/STCG) | Fully taxable as income | Fully taxable as income |
| Inflation protection | Yes — equity-linked growth | No | No |
| Who qualifies | Anyone | Investors aged 60+ | Anyone |
Tax on SWP Withdrawals
Each SWP redemption is treated as a sale of mutual fund units. The gain on each redeemed unit is either long-term capital gain (LTCG) or short-term capital gain (STCG) depending on how long those units have been held. For equity-oriented funds: units held over 12 months attract 12.5% LTCG tax on gains above ₹1.25 lakh per year; units held 12 months or less attract 20% STCG. For debt funds: gains are added to your income and taxed at your slab rate, regardless of holding period.
How to Use This Calculator
- Choose your SWP frequency — monthly, quarterly, half-yearly, or yearly.
- Enter your initial investment corpus.
- Set the withdrawal amount per period.
- Adjust the expected annual return using the slider.
- If you plan to let the corpus grow before starting withdrawals, set 'SWP Starts After' to the accumulation period.
- Set your withdrawal tenure in years and months.
- The results update instantly — check the amortization schedule below to see the month-by-month breakdown by year.
Benefits of Planning Your SWP
- Gives a clear picture of how long your corpus will last at a given withdrawal rate.
- Helps you balance withdrawal amount against corpus longevity.
- Month-by-month schedule shows exactly how interest and withdrawals interact.
- Lets you compare frequencies to find the right trade-off between regularity and growth.
- Useful for post-retirement income planning, education funding, or any recurring cash-flow need.