SWP (Systematic Withdrawal Plan) Calculator with Budget 2026 Tax Slabs

What is an SWP (Systematic Withdrawal Plan)?

A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount of money from your mutual fund investments at regular intervals, like every month. It is the opposite of a SIP. While a SIP helps you save money, an SWP helps you create a regular income from the money you've already saved, which is very useful for retirement.

How Does SWP Work?

When you set up an SWP, the mutual fund house redeems the number of units required to provide you with the requested withdrawal amount. The remaining units in your account continue to stay invested and earn returns. If the rate of return is higher than the withdrawal rate, your corpus can actually grow even while you are withdrawing money.

Benefits of SWP

• Regular Income: Provides a steady flow of cash, which is ideal for meeting monthly expenses during retirement.

• Tax Efficiency: In SWP, only the capital gains portion of the withdrawal is taxable, making it more tax-efficient compared to traditional options like pension or interest from fixed deposits.

• Flexibility: You can choose the amount, frequency, and duration of withdrawals according to your needs.

The Mathematical Formula

Our SWP calculator uses the following formula to determine the future value of your remaining corpus:

• Formula: FV = P(1+r)^n - W * [ ((1+r)^n - 1) / r ]

• Where:

  • P = Initial investment (Corpus)

  • W = Monthly withdrawal amount

  • r = Monthly rate of return (Annual Rate / 12 / 100)

  • n = Total number of months (Duration in years × 12)

*Note: The calculated results are based on the expected annual return rate. Mutual fund investments are subject to market risks.*