Why is SWP preferred over mutual fund dividend options?

SWP provides consistent cash flow on a chosen date, unlike dividends which depend on fund distributor discretion. Furthermore, under SWP, only the capital gains portion of the redeemed units is taxed, whereas dividends are taxed at your full marginal slab rate.

SWP Calculator

SWP Details

Total Investment

₹

Monthly Withdrawal

₹

Expected Annual Return

Withdrawal Period

Yrs

Mos

Withdrawal Summary

After 0 years and 0 months:

Final Value of Investment

₹0

Total Withdrawn

₹0

Initial Investment

₹0

Guide & Methodology

About the Systematic Withdrawal Plan (SWP) Calculator

Plan regular monthly cash flows from mutual fund investments while tracking remaining capital appreciation and longevity.

What this calculator does

Simulates periodic monthly cash withdrawals from an existing mutual fund corpus.
Calculates how long your capital will last at different withdrawal rates.
Shows residual portfolio growth when investment returns exceed withdrawal rates.

How it Works & Key Inputs

Step 1

Enter Initial Corpus

Input the lump sum mutual fund balance available for withdrawal.

Step 2

Set Monthly Withdrawal Amount

Choose the monthly payout required for living expenses or retirement.

Step 3

Input Expected Returns & Tenure

Specify annual portfolio return and planned withdrawal duration in years.

Core Calculation Parameters

Total InvestmentStarting mutual fund portfolio value.

Monthly WithdrawalFixed amount redeemed and transferred to your bank account each month.

Expected Return (%)Annual growth rate of the unredeemed corpus.

Formula & Calculation Logic

Mathematical Model

B(m) = B(m-1) × (1 + r/12) - W

Recursive monthly portfolio balance after interest credit and cash redemption.

Variables Breakdown

B(m)Portfolio balance at month m

WMonthly withdrawal amount

rAnnual return rate

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.