SWP Calculator
Generate a steady monthly income from your investments. Plan your withdrawals smartly.
Total Investment
₹0
Total Withdrawn
₹0
Final Value
₹0
Balance Projection
Understanding SWP (Systematic Withdrawal Plan)
SWP allows investors to withdraw a specific sum of money from a mutual fund scheme at regular intervals. It provides a regular flow of income and is particularly useful for retirees who need funds for their daily expenses.
Regular Income
SWP acts as a substitute for salary or pension. You can choose the amount and frequency (monthly, quarterly) of payouts according to your needs.
Tax Efficiency
Each withdrawal in SWP consists of a principal component and a capital gains component. You are taxed only on the gains, making it more tax-efficient than traditional fixed-income instruments.
Calculation Logic
The SWP calculation works on the principle of unit redemption.
- Units Redeemed: Withdrawal Amount / Current NAV
- Remaining Units: Previous Units - Units Redeemed
- Fund Value: Remaining Units × Current NAV
The calculator repeats this process for every month of the tenure to show the final remaining value.
SWP vs. Dividend
Many investors confuse SWP with the Dividend option of mutual funds.
- Certainty: Dividends are declared at the discretion of the fund manager and are not guaranteed. SWP guarantees a fixed cash flow (as long as you have units).
- Taxation: Dividends are added to your income and taxed at your slab rate. SWP withdrawals attract Capital Gains Tax, which can be lower (especially for Long Term Capital Gains).