Selvayana: SWP calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
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Detailed breakdown
SWP calculator: a quick guide
What is an SWP?
A systematic withdrawal plan (SWP) takes a fixed amount out of a mutual fund investment every month. People often use it to turn a retirement corpus into a monthly income while the rest stays invested.
How this calculator works it out
Each month the balance earns the monthly equivalent of your assumed return, then the withdrawal is taken out. The withdrawal rises once a year by the increase you choose, so it keeps pace with rising costs. The calculator also finds the highest starting withdrawal that lasts exactly your chosen period.
An example
A ₹50 lakh corpus, a ₹30,000 monthly withdrawal rising 5% a year and an assumed 8% return would run out in 18 years 4 months. To make it last the full 20 years, the starting withdrawal could be up to about ₹28,007 a month. Over that time you would withdraw about ₹1.03 crore in total.
Good to know
If withdrawals are higher than what the money earns, the corpus shrinks every year. A yearly increase speeds that up.
Poor returns in the early years hurt more than the same returns later, because you are withdrawing from a smaller balance.
Each withdrawal is a redemption of units, so only the gain portion is taxed as capital gains.
How it's calculated
Each month the balance earns the monthly equivalent of the annual return, then the withdrawal is taken out. The withdrawal rises by your chosen percentage at the start of each year.
Common questions
How are SWP withdrawals taxed?
Each withdrawal is treated as a redemption of units, so only the gain portion is taxed as capital gains. This is often more tax-efficient than interest income.
How much can I withdraw each month?
It depends on returns, inflation and how long you need the money. The figure above is the highest starting withdrawal that lasts your chosen period at the return you entered; real returns vary.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .