SWP Calculator
Three calculators in one — project income from a corpus, find the sustainable withdrawal for a tenure, or compute the corpus you need for a target income. Returns are user-assumed; tax rules auto-update by financial year.
Year-by-Year Breakdown
| Year | Opening | Withdrawn | Growth | Closing |
|---|
Key Points
- SWP = invest a lump sum, withdraw a fixed amount periodically; the balance keeps earning returns.
- Periodic rate = annual rate ÷ periods per year; withdrawal is subtracted after growth each period.
- If withdrawals exceed growth, the corpus declines and can exhaust before the tenure ends.
- Sustainable withdrawal that lasts exactly the tenure: PMT = PV × r / (1 − (1+r)^−n).
- Required corpus for a target income: PV = PMT × (1 − (1+r)^−n) / r.
- No TDS is deducted on SWP; gains are taxed as capital gains (equity) or at slab (debt, new investments).
- Returns are market-linked and not guaranteed; this tool uses your assumed rate.
SWP Taxation — How It Works
Each SWP withdrawal is part return of principal (not taxed) and part capital gain (taxed). No TDS is deducted on SWP. Rates below apply for the active financial year (auto-detected) and can be overridden via config.
- Equity Funds — LTCG12.5% on gains above ₹1.25 lakh (holding > 12 months).
- Equity Funds — STCG20% (holding < 12 months).
- Debt FundsGains added to income and taxed at your slab (investments after 31-Mar-2023).
- No TDS on SWPUnlike FD interest, no tax is deducted at source on SWP withdrawals.
- Principal vs GainOnly the gain portion of each withdrawal is taxed; principal returned is not income.
- Indicative OnlyActual tax depends on FIFO, holding period of each unit and your total income. Consult a CA.
SWP vs Other Income Options
| Feature | SWP (MF) | FD Interest | Annuity | PPF Withdrawal |
|---|---|---|---|---|
| Returns | Market-linked (higher potential) | Fixed, lower | Fixed | Fixed (~7.1%) |
| Tax | Capital gains (efficient) | Fully taxable | Fully taxable | Tax-free |
| TDS | Nil | Yes (if > limit) | Yes | Nil |
| Flexibility | High (change/stop anytime) | Low | Very low | Limited |
| Capital Access | Balance stays invested | Break deposit | Locked | Partial rules |
| Risk | Market risk | Very low | Low (insurer) | Zero (sovereign) |
| Best For | Tax-efficient regular income | Safe fixed income | Lifetime income | Tax-free needs |
The 4% Sustainable Withdrawal Rule
The 4% rule is a retirement-planning heuristic: withdrawing about 4% of your starting corpus per year (adjusted for inflation) has historically a high probability of lasting 30+ years. The calculator computes your withdrawal rate (annual withdrawal ÷ corpus) and compares it with 4%.
- Below ~4%More likely sustainable; corpus may even grow if returns exceed withdrawals.
- Above ~6–7%Higher risk of exhausting the corpus early, especially in low-return or falling markets.
- Rule of ThumbIt is a guideline, not a guarantee — actual sustainability depends on returns, inflation, step-up and sequence of returns.
Frequently Asked Questions
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