SWP Calculator

What is an SWP Calculator?

A Systematic Withdrawal Plan (SWP) Calculator is an online tool that helps you determine how much you can withdraw from your investments on a regular basis. It simulates how your withdrawals will affect your total corpus over time, considering the expected rate of return. This is crucial for retirees or anyone looking to create a steady income from their accumulated wealth.

How to Use Our SWP Calculator

Enter the total amount you have invested or plan to invest.
Input the amount you wish to withdraw every month.
Provide the expected annual rate of return on your investment.
Specify the total tenure of the withdrawal in years.
Click 'Calculate' to see the total amount withdrawn, the final value of your investment, and a detailed breakdown.

Frequently Asked Questions (FAQs)

What is a Systematic Withdrawal Plan (SWP)?

A Systematic Withdrawal Plan (SWP) is a facility that allows an investor to withdraw a fixed amount of money from their mutual fund investments at regular intervals (e.g., monthly, quarterly). It is often used to create a regular income stream during retirement.

How does an SWP work?

In an SWP, you invest a lump sum amount in a mutual fund scheme. You then specify a fixed amount to be withdrawn periodically. The fund house redeems units equivalent to the withdrawal amount and credits the money to your bank account.

What are the benefits of an SWP?

SWP provides a regular cash flow, helps in tax-efficient withdrawals (especially from equity funds), and allows your remaining investment to continue growing. It offers more control and flexibility compared to dividends.

Is the income from SWP taxable?

Yes, withdrawals from SWP are treated as redemption and are subject to capital gains tax. The tax depends on the type of fund (equity or debt) and the holding period of the units being redeemed.

SWP Inputs

Withdrawal Projection