SWP Calculator
Plan your Systematic Withdrawal Plan with our advanced calculator. Calculate returns, estimate final balance, and create a sustainable income strategy.
📊 Investment Details
💡 How SWP Works
Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your investment at regular intervals.
Key Benefits:
- Regular income from your investments
- Potential to earn returns on remaining corpus
- Flexibility to choose withdrawal amount and frequency
- Tax-efficient in many cases
Understanding Systematic Withdrawal Plan (SWP)
What is SWP?
A Systematic Withdrawal Plan (SWP) is an investment strategy that allows you to withdraw a predetermined amount of money from your mutual fund investments regularly. Unlike Systematic Investment Plans (SIP) where you invest regularly, SWP enables regular withdrawals while the remaining corpus continues to grow.
How SWP Works
When you invest a lump sum in a mutual fund and set up an SWP, a fixed amount is transferred to your bank account at regular intervals (usually monthly). The mutual fund redeems units equivalent to the withdrawal amount, while the remaining units stay invested and continue earning returns.
Key Benefits of SWP
- Regular Income: Perfect for retirees needing monthly income
- Tax Efficiency: Potential tax benefits compared to other withdrawal methods
- Flexibility: Choose withdrawal amount and frequency
- Wealth Growth: Remaining corpus continues to grow
- Discipline: Systematic approach to withdrawals
SWP vs Other Investment Strategies
SWP
Regular withdrawals from existing corpus
SIP
Regular investments to build corpus
STP
Transfer between funds systematically
Frequently Asked Questions
Who should use SWP?
SWP is ideal for retirees, individuals needing regular income, business owners, freelancers, or anyone wanting systematic access to their investments while keeping the remaining amount invested.
Can I stop my SWP anytime?
Yes, Systematic Withdrawal Plans offer flexibility - you can pause, modify, or cancel your withdrawals at any time based on your financial needs.
What are the risks of SWP?
The main risks include market volatility affecting returns, potential corpus depletion if withdrawals are too high, and averaged returns over time. It's important to plan withdrawals conservatively.
Is SWP tax-efficient?
SWP can be tax-efficient as only the gains portion of each withdrawal is typically taxable. However, tax rules differ for equity vs. debt funds and may change, so consult a tax advisor.