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SWP Calculator
Calculate your Systematic Withdrawal Plan
Did you know? SWP from equity funds held for 1+ year qualifies for lower LTCG tax rates.
About SWP Calculator
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investments at regular intervals. It is the opposite of SIP and is commonly used for generating regular income in retirement.
How it works?
A = P (1 + i)^n - W * ( (1+i)^n - 1 ) / i- A = Final Balance
- P = Initial Investment
- W = Monthly Withdrawal Amount
- i = Monthly Interest Rate
- n = Number of Months
Key Benefits
Regular Income: Create your own 'pension' from your corpus.
Tax Efficiency: Only the capital gains component of the withdrawal is taxed, making it more efficient than traditional FDs.
Capital Growth: The remaining money keeps growing in the market.
Frequently Asked Questions
Is SWP tax-free?
No, but it is tax-efficient. For equity funds, long-term capital gains above 1.25 Lakh are taxed at 12.5%.
How is SWP better than Dividend option?
SWP is more tax-efficient and reliable. Dividends are declared at the fund house's discretion, whereas SWP gives you fixed cash flow.
Does SWP erode capital?
If your withdrawal rate is higher than the fund's return rate, your capital will deplete over time. A safe withdrawal rate is usually 3-4% to ensure capital longevity.