SWP (Systematic Withdrawal Plan) Calculator – Calculate Monthly Pension & Remaining Corpus

A Systematic Withdrawal Plan (SWP) allows an investor to withdraw a fixed sum of money at predetermined intervals (usually monthly) from an existing mutual fund corpus while the remaining capital continues to earn compounding market returns.

Bank FD interest is 100% taxable at your highest income slab rate every year. In contrast, an SWP withdrawal is treated as a partial redemption of mutual fund units where only the capital gain portion is taxed, and the first ₹1.25 Lakhs of equity LTCG is 100% tax-free under Section 112A.

Financial planners recommend a safe withdrawal rate between 6% and 8% per annum of the initial corpus in equity-hybrid funds. If your fund generates a 10%-12% CAGR, your remaining capital will actually grow over time while providing a regular monthly pension.

Conservative Hybrid Funds, Balanced Advantage Funds (BAFs), and Multi-Asset Allocation Funds are popular choices for SWPs as they balance steady returns with low market volatility.

Tax is computed using First-In-First-Out (FIFO) unit redemption. Only the profit portion embedded inside each monthly installment is taxed as Long-Term Capital Gains (12.5% above ₹1.25L exemption) or Short-Term Capital Gains (20%).

Yes! SWPs offer 100% flexibility. You can increase, decrease, pause, or terminate your monthly withdrawal amount online at any time with zero exit load after 1 year.

The withdrawal amount you receive every month is fixed, but the performance of the underlying mutual fund varies with market movements.

Yes! If the annual rate of fund growth exceeds your annual withdrawal rate and inflation rate, an SWP portfolio can provide a perpetual lifelong pension for 30+ years.