SWP Calculator
Plan your Systematic Withdrawal to ensure your corpus lasts.
Frequently Asked Questions
What is a Systematic Withdrawal Plan (SWP)?
SWP is a mutual fund facility that allows you to withdraw a fixed amount of money from your investment at regular intervals (e.g., monthly).
How does SWP differ from an SIP?
SIP is for *investing* regularly to build wealth. SWP is for *withdrawing* regularly to generate a steady income stream, typically after retirement.
Is SWP better than a bank FD for monthly income?
SWP can be more tax-efficient as you only pay tax on the 'gain' component of your withdrawal, not the principal. It also offers potential for capital growth.
How do I calculate how long my money will last?
Enter your initial corpus, expected return, and the monthly withdrawal amount. Our tool will show you the remaining balance over time and the 'runway' of your funds.
Can I withdraw more than the returns earned?
Yes, but if you withdraw more than the interest/returns generated, your principal corpus will start depleting over time.
What is the tax treatment for SWP?
Withdrawals are treated as redemptions. If from equity funds, they are subject to STCG or LTCG tax rules based on the holding period of the units withdrawn.
Can I change my SWP amount later?
Yes, most mutual funds allow you to stop, start, or modify your SWP instruction at any time without any major penalty.
Is there an exit load on SWP?
Yes, if you withdraw units within the exit load period (usually 1 year for equity funds), an exit load might be applicable on those units.
Can I use SWP to pay my EMIs?
Many investors use SWP from a safe debt or hybrid fund to automate their EMI payments while keeping their principal working for them.
Does SWP guarantee a fixed income for life?
No. The income lasts only as long as there are units in your account. Market fluctuations can impact the longevity of your corpus.