SWP Calculator
Plan your retirement income with systematic withdrawals from your investments!
SWP Calculator
Calculate your systematic withdrawal plan returns and plan your retirement income
Minimum: ₹10,000
Range: ₹1,000 - ₹10,00,000
Typical range: 6-12%
Range: 1-50 years
SWP Summary
Investment Breakdown
SWP Analysis
Visual breakdown of your withdrawal strategy
Investment Balance Over Time
Hover over the chart to see detailed values • Click to view in fullscreen
Monthly Breakdown
What is SWP (Systematic Withdrawal Plan)?
A Systematic Withdrawal Plan (SWP) is a strategic approach to withdrawing money from your mutual fund investments at regular intervals. Unlike SIP (Systematic Investment Plan) where you invest regularly, SWP allows you to withdraw a fixed amount periodically from your accumulated corpus, creating a steady income stream.
SWP is particularly beneficial for retirees or individuals who have built a substantial investment corpus and now want to generate regular income. It provides the flexibility to withdraw monthly, quarterly, or annually while keeping the remaining amount invested to continue earning returns. This approach helps in managing cash flow needs while potentially maintaining the investment's growth potential.
The key advantage of SWP is that it offers a disciplined approach to withdrawals, preventing impulsive decisions during market volatility. It's an excellent tool for retirement planning, helping you create a pension-like income from your mutual fund investments while maintaining the flexibility to adjust withdrawal amounts based on your changing financial needs.
Frequently Asked Questions About SWP
How does SWP differ from SIP?
SIP (Systematic Investment Plan) involves regular investments into mutual funds, while SWP (Systematic Withdrawal Plan) involves regular withdrawals from existing investments. SIP builds wealth over time, while SWP provides regular income from accumulated wealth, making it ideal for retirement planning. SIP is for wealth creation, while SWP is for wealth distribution and income generation.
Who should use SWP?
SWP is ideal for retirees, individuals seeking regular income from investments, those with lump sum amounts who want systematic income, and anyone looking to create a pension-like income stream from their mutual fund investments. It's particularly useful for people who have accumulated wealth and now need regular cash flow to meet their living expenses.
Is SWP taxable?
Yes, SWP withdrawals are taxable. The tax treatment depends on the type of mutual fund and holding period. Equity funds have different tax rules than debt funds, and long-term capital gains may have different tax rates than short-term gains. It's advisable to consult a tax professional to understand the specific tax implications based on your investment portfolio and withdrawal strategy.
Ready to Plan Your Retirement Income?
Use our SWP calculator to understand how systematic withdrawals can help you create a steady income stream from your investments. Consider consulting with financial advisors to create a comprehensive retirement strategy tailored to your needs.