Is SWP income taxable?

Each withdrawal is treated as a redemption, so capital-gains tax applies on the gains portion. The rate depends on the fund type and how long those units were held.

What is a safe monthly withdrawal?

A common rule of thumb is to keep annual withdrawals well below your expected return so the corpus is not eroded. This calculator lets you test any figure and see the effect instantly.

Is an SWP better than a bank FD for income?

An SWP can be more tax-efficient and can grow the remaining corpus, but it carries market risk. An FD gives fixed, guaranteed interest but no growth and less tax efficiency.

What happens if markets fall early in an SWP?

Early poor returns are the biggest risk to an SWP, because withdrawals eat into a shrinking corpus. A lower withdrawal rate and a buffer of safer assets help manage this.

SWP Calculator – swptoolkit.com

An SWP calculator shows how long a corpus lasts when you withdraw a fixed amount every month. It runs your fund month by month — growing the balance at your expected return, then subtracting each withdrawal — and flags the point at which the money would run out.

What is an SWP?

A Systematic Withdrawal Plan is the mirror image of a SIP. Instead of adding money every month, you take a fixed amount out while the rest stays invested and keeps growing. It is a popular way to turn a retirement corpus into a steady monthly income.

What decides how long the corpus lasts?

It is a race between two forces: your withdrawals shrink the corpus, while returns grow it. If the return outpaces the withdrawal rate, the corpus can last for decades or even keep rising. Withdraw too aggressively and it depletes from both ends.

💡 Worked example

From a ₹50 lakh corpus, withdraw ₹30,000 a month at an assumed 10% return. Because the return exceeds the withdrawal, the corpus never runs dry over 25 years — it actually grows to well over ₹1 crore.

SWP Calculator

What is an SWP?

What decides how long the corpus lasts?

💡 Worked example

SWP questions

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