FinToolsHub Logo
Retirement Planning Tool

SWP Calculator

Generate a steady monthly income from your investments. Calculate how long your lumpsum will last or how much regular income you can safely withdraw.

SWP Calculator

Systematic Withdrawal Plan

₹
₹
%
Yrs

Total Withdrawal

₹6,00,000

Final Balance

₹3,20,761

Total Value

₹9,20,761

SWP Strategy Insight

Capital Consumption: Your withdrawal rate is higher than your returns. You are consuming your initial capital to fund your income.

What is a Systematic Withdrawal Plan (SWP)?

An SWP allows you to withdraw a fixed amount of money from your mutual fund investment at regular intervals (monthly, quarterly, etc.). While an SIP is about building wealth, an SWP is about extracting income from built wealth.

How SWP Works?

When you initiate an SWP, the fund house redeems the number of units required to provide the specified withdrawal amount. The remaining units continue to grow as per the fund's performance.

Advantages of SWP

  • Regular Income: Perfect for retirees or those looking for a secondary income stream.
  • Tax Efficiency: Only the capital gains portion of the withdrawal is taxable, making it more efficient than dividends or interest in many cases.
  • Rupee Cost Averaging: Redemptions happen across different market cycles, helping manage market volatility.

SWP vs SIP

FeatureSIPSWP
DirectionInflow (Saving)Outflow (Withdrawal)
GoalWealth CreationRegular Income
UnitsIncreasingDecreasing

Ready to plan for retirement? Combine your SWP strategy with our FIRE Retirement Calculator to see how much corpus you need to build before you can start your withdrawals!