SWP Calculator (Systematic Withdrawal Plan)

Calculate monthly mutual fund payouts, total withdrawals, and final remaining corpus.

Overview

Projects monthly cash flow payouts and remaining portfolio corpus for Systematic Withdrawal Plans (SWP) in mutual funds.

Formula & Calculation Method

Remaining Balance = (Initial Balance - Monthly Withdrawal) × (1 + Monthly Return)

Simulates regular monthly redemptions from mutual fund investments while remaining capital continues compounding.

Worked Example: ₹50,00,000 Corpus with ₹35,000 Monthly SWP at 8% Return

Inputs: Initial Corpus = ₹50,00,000 | Monthly Withdrawal = ₹35,000 | Expected Return = 8% p.a. | Tenure = 15 Years

  • Total withdrawal over 15 years = ₹35,00,000 × 180 months = ₹63,00,000
  • Capital remaining after 15 years of steady withdrawals compounding at 8% = ₹57,84,320

Summary: Invested = ₹50,00,000 | Total Withdrawn = ₹63,00,000 | Remaining Corpus = ₹57,84,320

Common Use Cases

  • Retirement Regular Income: Generate tax-efficient monthly income from accumulated mutual fund wealth.
  • Senior Citizen Cash Flow: Replace traditional bank fixed deposit interest with higher-yielding hybrid fund SWPs.
  • Post-Tax Efficiency: Benefit from capital gains taxation where only the profit component of each withdrawal is taxed.

Frequently Asked Questions

Why is SWP more tax-efficient than dividend plans or FD interest?

Because each SWP instalment consists partly of original capital and partly of gains; tax is paid only on the capital gains portion.

Can the SWP amount be modified after starting?

Yes, you can increase, decrease, pause, or terminate your monthly SWP instructions at any time.

What mutual funds are best suited for SWP?

Conservative hybrid funds, equity savings funds, or balanced advantage funds that offer capital stability with modest growth.

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