SWP Calculator: Calculate Your Systematic Withdrawal Returns
Track XIRR during withdrawals, check if your corpus will last, and find your safe withdrawal rate.
Calculate Your SWP Returns
Enter your corpus, monthly withdrawal, and current value. Get instant XIRR and sustainability analysis.
Open SWP Calculator →Select "SIP / Mutual Fund" → "SWP Analysis" tab
What is SWP?
SWP (Systematic Withdrawal Plan) is the reverse of SIP. Instead of investing monthly, you withdraw a fixed amount from your invested corpus every month.
Common SWP Use Cases
- Retirement income — Regular pension-like withdrawals from your corpus
- Regular expenses — Monthly income from inheritance or windfall
- Tax efficiency — Systematic redemption to spread capital gains across years
- Education funding — Regular withdrawals for tuition fees
SIP vs SWP: Understanding the Difference
| Aspect | SIP (Accumulation) | SWP (Distribution) |
|---|---|---|
| Direction | Money flows IN monthly | Money flows OUT monthly |
| Goal | Build corpus over time | Generate regular income |
| Phase | Wealth accumulation (working years) | Wealth distribution (retirement) |
| Risk | Rupee cost averaging helps | Sequence-of-returns risk |
| XIRR Sign | Measures growth rate | Measures income yield + growth |
How is XIRR Calculated for SWP?
For SWP, the cashflow pattern is reversed compared to SIP:
The XIRR tells you: what annualized return did your corpus generate while also providing you regular income?
💡 Key Insight
A positive SWP XIRR means your corpus grew even while you were withdrawing money. A 10% XIRR + 6% withdrawal rate = your money is still growing faster than you're spending it!
The 4% (or 6%) Safe Withdrawal Rule
The 4% rule (from US studies) suggests withdrawing 4% of your corpus annually allows it to last 30+ years. In India, with higher expected returns, many use a 6% rule:
Safe Withdrawal Formula
Monthly Safe Withdrawal = (Corpus × 6%) ÷ 12
Example: ₹50 Lakh corpus → ₹25,000/month sustainable withdrawal
Tax Implications of SWP
SWP is more tax-efficient than FD interest because:
- Each withdrawal is part principal return (not taxed) and part gains
- Only the capital gains portion is taxable
- LTCG on equity funds: 12.5% on gains above ₹1.25 Lakh/year
- You can spread redemptions across financial years to optimize taxes
Frequently Asked Questions
What's a good XIRR for SWP?
For equity-based SWP, 10-12% XIRR is considered good. For debt funds, 7-8% is typical. If XIRR exceeds your withdrawal rate, your corpus is still growing!
Does SWP work in a bear market?
SWP faces "sequence-of-returns risk" — withdrawing during market crashes depletes corpus faster. Consider keeping 2-3 years of withdrawals in liquid funds as buffer.
SWP vs Dividend Option: Which is better?
SWP from growth option is generally more tax-efficient than dividend (IDCW) option because you control the timing and amount of "income".
How do I start SWP on my mutual fund?
Log into your AMC/CAMS/KFintech portal → Select fund → "SWP" option → Enter amount and frequency → Set start date. Most platforms allow weekly, monthly, or quarterly SWP.
Plan Your Retirement Income
Calculate your SWP XIRR and check if your corpus will last.
Calculate SWP Returns →