SWP Calculator
Calculate the sustainability of your Systematic Withdrawal Plan (SWP) from your investments.
Withdrawal Details
Withdrawal Over Time
Year-wise Breakdown
SWP Sustainability Analysis - ₹10,000/month
Analyze how your monthly withdrawal of ₹10,000 affects your investment sustainability across different time periods and return rates
| Return Rate | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years | 30 Years |
|---|---|---|---|---|---|---|
| 0% | ₹24.0L ₹24,00,000 Withdrawn: ₹6.0L Sustainable | ₹18.0L ₹18,00,000 Withdrawn: ₹12.0L Sustainable | ₹12.0L ₹12,00,000 Withdrawn: ₹18.0L Sustainable | ₹6.0L ₹6,00,000 Withdrawn: ₹24.0L Sustainable | ₹0 ₹0 Withdrawn: ₹30.0L Depleted | ₹0 ₹0 Withdrawn: ₹36.0L Depleted |
| 3% | ₹28.4L ₹28,38,383 Withdrawn: ₹6.0L Sustainable | ₹26.5L ₹26,50,646 Withdrawn: ₹12.0L Sustainable | ₹24.3L ₹24,32,568 Withdrawn: ₹18.0L Sustainable | ₹21.8L ₹21,79,245 Withdrawn: ₹24.0L Sustainable | ₹18.8L ₹18,84,980 Withdrawn: ₹30.0L Sustainable | ₹15.4L ₹15,43,158 Withdrawn: ₹36.0L Sustainable |
| 5% | ₹31.7L ₹31,70,015 Withdrawn: ₹6.0L Sustainable | ₹33.9L ₹33,88,206 Withdrawn: ₹12.0L Sustainable | ₹36.7L ₹36,68,222 Withdrawn: ₹18.0L Sustainable | ₹40.3L ₹40,27,584 Withdrawn: ₹24.0L Sustainable | ₹44.9L ₹44,88,774 Withdrawn: ₹30.0L Sustainable | ₹50.8L ₹50,80,647 Withdrawn: ₹36.0L Sustainable |
| 7% | ₹35.4L ₹35,36,947 Withdrawn: ₹6.0L Sustainable | ₹43.0L ₹42,98,136 Withdrawn: ₹12.0L Sustainable | ₹53.8L ₹53,77,217 Withdrawn: ₹18.0L Sustainable | ₹69.1L ₹69,06,950 Withdrawn: ₹24.0L Sustainable | ₹90.8L ₹90,75,538 Withdrawn: ₹30.0L Sustainable | ₹1.2Cr ₹1,21,49,782 Withdrawn: ₹36.0L Sustainable |
| 10% | ₹41.6L ₹41,61,556 Withdrawn: ₹6.0L Sustainable | ₹60.7L ₹60,72,675 Withdrawn: ₹12.0L Sustainable | ₹92.2L ₹92,17,055 Withdrawn: ₹18.0L Sustainable | ₹1.4Cr ₹1,43,90,533 Withdrawn: ₹24.0L Sustainable | ₹2.3Cr ₹2,29,02,501 Withdrawn: ₹30.0L Sustainable | ₹3.7Cr ₹3,69,07,319 Withdrawn: ₹36.0L Sustainable |
SWP Sustainability Analysis: This table shows the remaining amount and total withdrawn for a monthly withdrawal of ₹10,000. The “Sustainable” status indicates your investment can support withdrawals for the specified period, while “Depleted” means the investment would be exhausted. The actual results may vary based on market conditions and fund performance. Past performance does not guarantee future results.
What is SWP (Systematic Withdrawal Plan)?
Systematic Withdrawal Plan (SWP) is a smart way to generate regular income from your mutual fund investments. Instead of withdrawing your entire investment at once, SWP allows you to withdraw a fixed amount periodically (monthly, quarterly, or annually) while keeping the remaining amount invested to continue earning returns.
Key Benefits of SWP
- Regular Income: Generate steady monthly or quarterly income from your investments
- Tax Efficiency: Only withdrawn amounts are taxed, not the entire corpus
- Flexibility: Choose withdrawal frequency and amount as per your needs
- Continued Growth: Remaining corpus continues to earn returns
- Emergency Access: Can pause or modify withdrawals anytime
SWP vs Lump Sum Withdrawal
SWP Withdrawal
Systematic withdrawals provide regular income while keeping the remaining corpus invested for continued growth and better tax efficiency.
Lump Sum Withdrawal
One-time withdrawal of entire corpus can lead to higher tax liability and loss of potential future returns on the withdrawn amount.
Real SWP Examples & Calculations
Example 1: ₹30 Lakh Corpus with ₹10,000 Monthly SWP
Example 2: ₹50 Lakh Corpus with ₹25,000 Monthly SWP
💡 Pro Tips for SWP Success
Calculate Sustainable Rate
Withdraw only 4-6% of your corpus annually to ensure your money lasts longer and continues to grow.
Monitor Fund Performance
Regularly review your fund's performance and consider switching if it consistently underperforms.
Adjust for Inflation
Increase your withdrawal amount annually to maintain your purchasing power against inflation.
Keep Emergency Fund
Maintain 6-12 months of expenses in liquid funds to avoid forced withdrawals during market downturns.
Important Considerations for SWP Investments
Risk Factors in SWP Investments
Sequence of Returns Risk
Poor market performance in early years can significantly reduce your corpus and income sustainability. This is why it's crucial to maintain a balanced portfolio and not withdraw too aggressively.
Longevity Risk
Your money might run out if you live longer than expected or withdraw too much too quickly. Plan for a longer retirement period and be conservative with withdrawal rates.
Inflation Risk
Inflation can erode your purchasing power over time. Your withdrawal amount might become insufficient to meet your expenses in later years. Consider increasing withdrawals annually.
Market Volatility Risk
Market downturns can reduce your corpus value and affect your withdrawal sustainability. Having a diversified portfolio and emergency fund can help mitigate this risk.
Tax Implications of SWP Investments
Equity Mutual Funds
Short-term gains (≤1 year): 15% tax on gains
Long-term gains (>1 year): 10% tax on gains above ₹1 lakh
Dividend: Taxed at 10% in the hands of investors
Debt Mutual Funds
Short-term gains (≤3 years): Taxed as per income slab
Long-term gains (>3 years): 20% with indexation benefit
Interest income: Taxed as per income slab
Hybrid Funds
Equity-oriented (>65% equity): Same as equity funds
Debt-oriented (<65% equity): Same as debt funds
Taxation: Depends on equity allocation
Tax Planning Strategies
• Use equity funds for long-term withdrawals
• Consider debt funds for short-term income needs
• Plan withdrawals to optimize tax liability
• Keep track of holding periods for tax calculations
💡 SWP Tax-Saving Tips
- • Use equity funds for withdrawals after 1 year
- • Consider debt funds with indexation benefits for short-term needs
- • Plan withdrawals to stay within tax-free limits
- • Keep proper records of all transactions for tax filing
- • Consult a tax advisor for complex tax planning strategies
Key Insights for SWP Investment Success
Sustainable Withdrawal Rate
The 4% rule suggests withdrawing only 4% of your initial corpus annually to ensure your money lasts 30+ years. Adjust this rate based on your age, health, and market conditions.
Portfolio Diversification
Maintain a balanced mix of equity and debt funds to reduce volatility while ensuring growth. Equity funds provide growth potential while debt funds offer stability and regular income.
Inflation Protection
Your withdrawal amount should increase annually to keep pace with inflation. Consider increasing withdrawals by 3-5% each year to maintain your purchasing power over time.
Tax Optimization
Plan your withdrawals strategically to minimize tax liability. Use equity funds for long-term withdrawals and debt funds for short-term needs to benefit from favorable tax treatment.