SWP Calculator (Systematic Withdrawal Plan)
Institutional retirement cash flow engine modeling capital exhaustion, monthly withdrawals, and net remaining corpus.
SWP Cashflow Parameters
Remaining Portfolio Value After 20 Years
₹₹1,36,57,493.88
Total Cash Withdrawn: ₹₹1,56,00,000.00
Initial Corpus
₹₹1,00,00,000.00
Total Profit Generated
₹₹1,92,57,493.88
Section 112A Tax Efficiency:
Estimated annual LTCG tax on monthly withdrawals: ~₹₹49,660.00/year. SWP is significantly more tax-efficient than Bank FD interest which is taxed at your peak slab rate (up to 30%).
Monthly SWP Balance Evolution Formula
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: ₹1 Crore Corpus with ₹65,000 Monthly Withdrawal for 20 Years @ 8.5% Conservative Hybrid Return
Initial Corpus: ₹1,00,00,000 | Monthly Payout: ₹65,000 | Annual Return: 8.5% | Horizon: 20 Years
1. Annual Withdrawal = ₹7,80,000 (7.8% of initial corpus) 2. Expected monthly growth exceeds initial withdrawal in early years 3. Total Amount Withdrawn across 240 months = 240 × ₹65,000 = ₹1,56,00,000 4. Ending Portfolio Balance = ₹1,12,71,840 (Corpus expanded despite paying ₹1.56 Cr in cash flows)
Statutory Tax Framework (Union Budget FY 2026–27)
Unlike bank FD interest which is taxed at your full slab rate up to 39% TDS every financial year, an SWP only attracts capital gains on the embedded capital gain portion of each redeemed unit. Principal redemption is 100% tax-exempt.
Frequently Asked Questions
Why is an SWP more tax-efficient than Dividend Payout or Bank FD interest for retirees?
In a bank FD, 100% of the interest earned is taxed at your income slab rate every year. In mutual fund dividend payouts, the entire dividend is taxed at slab rates. In an SWP, each withdrawal consists of principal repayment (0% tax) plus capital gains. For equity funds, only the capital gain portion exceeding ₹1.25 Lakh/yr is taxed at 12.5% under Section 112A.
What is a sustainable withdrawal rate from an equity or hybrid corpus in India?
Financial planners recommend a 5.0% to 7.0% initial withdrawal rate for hybrid funds (Conservative or Balanced Advantage Funds) delivering 8% to 10% returns, ensuring your corpus never gets depleted over 25+ years.
Can I change my monthly SWP payout amount anytime?
Yes. An SWP mandate can be revised, paused, or terminated with 7 to 10 days notice to your AMC or platform without surrender penalties.
Related Financial Calculators
View All 18 CalculatorsDetermine the exact corpus required before activating an SWP.
Compare SWP post-tax returns against traditional bank FDs.
Calculate how much to save monthly to accumulate your SWP corpus.
Verify tax liabilities on mutual fund redemptions.