SWP Calculator India 2025 - Systematic Withdrawal Plan
Plan your retirement income with our comprehensive SWP calculator. Calculate sustainable withdrawal amounts, analyze tax implications, and ensure your corpus lasts throughout retirement.
Monthly Withdrawal
₹15.00 K
Sustainability Analysis
Tax Implications
Corpus Depletion Over Time
Monthly Withdrawal Trend (Inflation Adjusted)
Withdrawal amounts are adjusted for inflation (6% annually) to maintain purchasing power.
Return Scenario Comparison
Conservative (7%)
Moderate (10%)
Aggressive (13%)
Withdrawal vs Remaining Corpus
Key Metrics
Tax Impact Analysis
Gross Withdrawals
₹30.0L
Capital Gains Tax
₹1.5L
Dividend Tax
₹75.0K
Net Withdrawals
₹27.8L
Tax Efficiency Tips
- • Consider equity funds for LTCG exemption up to ₹1 lakh annually
- • Plan withdrawals to optimize tax liability across financial years
- • Debt funds held for >3 years get indexation benefits
- • Consult a tax advisor for personalized tax planning
SWP Withdrawal Schedule
Year-wise breakdown of withdrawals and corpus balance
Initial Investment
₹50,00,000
Monthly Withdrawal
₹25,000
Total Withdrawals
₹30,00,000
Final Corpus
₹25,00,000
| Year | Opening Balance | Monthly Withdrawal | Annual Withdrawals | Returns Earned | Closing Balance | Cumulative Withdrawals |
|---|
Withdrawal Analysis
Tax Summary
Important Notes
- • Calculations assume consistent monthly returns and withdrawals
- • Tax calculations are indicative and may vary based on fund type and holding period
- • Inflation adjustment is applied to withdrawal amounts over time
- • Market volatility can significantly impact actual returns and corpus sustainability
- • Consider consulting a financial advisor for personalized advice
SWP Calculation Formulas
Understand the mathematical formulas used to calculate Systematic Withdrawal Plan returns.
SWP Remaining Corpus
Calculate the remaining corpus after systematic withdrawals.
Remaining Corpus = Initial Corpus × (1 + r)^n - SWP × [((1 + r)^n - 1) / r]Example:
₹50L corpus, ₹25,000 monthly SWP at 8% p.a. for 5 years
Variables:
SWP Total Withdrawals
Calculate total amount withdrawn through SWP.
Total Withdrawals = Monthly SWP × Number of MonthsExample:
₹25,000 monthly SWP for 5 years (60 months)
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
Why Choose SWP for Regular Income?
Systematic Withdrawal Plan offers multiple advantages over traditional income sources
Regular Income Stream
Get steady monthly income from your investments without selling entire holdings
Tax Efficiency
Better tax treatment compared to traditional fixed deposits and recurring withdrawals
Flexibility
Adjust withdrawal amounts based on your changing financial needs
Rupee Cost Averaging
Benefit from market volatility through systematic withdrawal timing
Is SWP Right for You?
Understanding who benefits most from Systematic Withdrawal Plans
Ideal For
- Retirees seeking regular income
- Investors with large corpus (₹25L+)
- Those wanting tax-efficient withdrawals
- People with flexible income needs
Not Suitable For
- Young investors building wealth
- Those with small investment amounts
- Investors needing guaranteed returns
- People with high-risk aversion
Expert SWP Planning Tips
Professional strategies to maximize your SWP efficiency and ensure long-term sustainability
Plan Your Withdrawal Rate
Keep withdrawal rate between 4-6% annually for sustainable income. Higher rates may exhaust your corpus faster than expected.
Start Conservative
Begin with lower withdrawal amounts and increase gradually. This protects your corpus during market downturns.
Diversify Your Holdings
Spread SWP across different fund categories - hybrid, debt, and equity funds for balanced risk and returns.
Consider Tax Implications
SWP from equity funds has better tax treatment than debt funds. Plan withdrawals to optimize tax efficiency.
Understanding SWP Tax Implications
Learn about capital gains tax and dividend tax on your SWP withdrawals
Capital Gains Tax
When you withdraw from equity funds through SWP, you pay capital gains tax on the profit portion.
- • LTCG (>1 year): 12.5% on gains above ₹1 lakh per year
- • STCG (≤1 year): 20% on all gains
- • Debt funds: 20% with indexation benefit (>3 years)
Dividend Tax
If your mutual fund distributes dividends during the SWP period, they are subject to TDS.
- • TDS Rate: 10% if dividend exceeds ₹5,000 per year
- • Tax Treatment: Added to your income and taxed as per slab
- • Growth Funds: No dividend distribution, hence no dividend tax
Tax Optimization Tips
- • Choose growth funds over dividend funds to avoid dividend tax
- • Plan withdrawals to stay within the ₹1 lakh LTCG exemption limit
- • Consider staggered withdrawals across financial years for tax efficiency
- • Maintain proper records of purchase dates and NAVs for tax calculations
Important Disclaimer
SWP calculations are based on assumed returns and may vary with actual market performance. Past performance doesn't guarantee future results. Consider consulting a financial advisor for personalized advice. Tax implications may vary based on individual circumstances and current tax laws.
Frequently Asked Questions about SWP
Everything you need to know about Systematic Withdrawal Plans, SWP benefits, and systematic income generation
What is SWP and how does it work?
What is the ideal withdrawal rate for SWP?
How is SWP taxed in India?
Can I change my SWP amount later?
What happens if my fund value falls below withdrawal amount?
Which funds are best for SWP?
Is SWP better than FD for regular income?
What documents are needed to start SWP?
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