SWP Calculator India 2026

SWP (Systematic Withdrawal Plan) is the reverse of SIP. Instead of investing regularly, you withdraw a fixed amount monthly from your mutual fund investment. The remaining corpus continues to earn market returns. It's ideal for retirees or anyone needing regular income from investments.

SWP taxation is more efficient than FD interest. Only the capital gains portion of each withdrawal is taxed. For equity funds held >1 year, LTCG of 10% applies on gains above ₹1 lakh per year. For debt funds, gains are added to income and taxed at your slab rate. The principal portion is tax-free.

SWP can be more tax-efficient and provide higher real returns than FD. In FD, entire interest is taxable at slab rate (30% for high earners). In SWP, only gains are taxed at lower rates. However, SWP carries market risk while FD has guaranteed principal.

During market downturns, you'll redeem more units for the same withdrawal amount, which depletes your corpus faster. This is called 'sequence of returns risk'. Solutions: (1) Keep 1-2 years expenses in liquid funds, (2) Reduce withdrawals during bear markets, (3) Use balanced funds to reduce volatility.

The famous '4% rule' suggests withdrawing 4% of corpus annually (adjusted for inflation) for a 30-year retirement. With higher Indian equity returns (12%), a 5-6% withdrawal rate may be sustainable. However, this varies with market conditions and individual circumstances.

Yes, SWP is fully flexible. You can increase, decrease, pause, or stop withdrawals anytime without penalty. This is a major advantage over FD where you're locked into fixed interest payouts. Most fund houses allow online SWP modifications.