SWP Calculator

Calculate your Systematic Withdrawal Plan.

Total Investment


Withdrawal amount per month


Expected Returns



1 yr
30 yrs

What is SWP?

A systematic withdrawal plan (SWP) provides regular income to investors. You can withdraw a fixed or a variable amount on a predetermined date every month, quarter, or year. Cash flows can be customised to withdraw either a fixed amount or the investment’s capital gains. Let’s say you own 10,000 units in a mutual fund scheme. You have specified a set of instructions to the mutual fund house whereby you seek to withdraw ₹4,000 every month through the SWP. On 1 January 2020, the NAV of the scheme was ₹10. The mutual fund house would redeem 400 units (₹4,000/10 = 400 units) and give you an amount of ₹4,000. You still have 9,600 units left in the mutual fund scheme. If on 1 February 2020, the NAV of the mutual fund scheme increased to ₹15, the mutual fund house would redeem 266 units (₹4,000/ ₹15 = 266 units) and give you ₹4,000 for the month of February. Now you are left with 9,600 units – 266 units or 9,334 units. You can repeat the computations for the next several months in the same way.

Frequently Asked Questions

What is the SWP calculator?

Using the Upstox SWP calculator, you can see the withdrawals from your mutual funds on a monthly basis. It displays the total value of your mutual fund investment after withdrawals. Through the systematic withdrawal plan, you will be able to receive a regular income. The SWP calculator has a formula box where you can enter the total investment amount, withdrawal per month, annual rate of return, and tenure. You can use the SWP calculator to determine the future value of your mutual fund investments.

How does an SWP work?

SWPs and SIPs work in opposite ways. SIPs allow investors to invest a set amount at predetermined intervals, whereas SWPs allow investors to withdraw a set amount at predetermined intervals. Depending on the investor’s needs, they can pick the amount, the frequency and the duration of the SWP.

When can one use an SWP?

When an investor needs a consistent cash flow from his/her investments, he/she might opt for an SWP. Every person’s need for a SWP is different. SWP can be used for a variety of purposes, including children’s education, EMI repayment, and retirement.

How does long-term and short-term capital gain affect my tax implications?

For equity-oriented scheme: If your holding period is less than 1 year, the gains will be calculated as short-term capital gains and will be taxed at 15% and if the holding period is more than 1 year, then long-term capital gains tax of 10% will be levied if the total capital gains exceed ₹1,00,000 in a year.

For debt-oriented scheme: If your holding period is less than 3 years, gains will be calculated as short-term capital gains and will be taxed as per the investors’ tax slab and if the holding period is more than 3 years, then long-term capital gains tax of 20% will be levied with the benefit of indexation.

Note: In view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.

When should an investor opt for an SWP scheme?

SWP is an ideal solution during retirement. Most people prefer conventional sources for investment to invest the lump-sum amount received during retirement. These traditional sources are taxable. SWP offers a tax-efficient way to earn a regular income. Therefore, retirees can earn a regular income and benefit from capital appreciation. SWP is not just for the retirees; it is also for people with multiple dependents. Employees with family responsibilities who require additional income can also opt for the SWP option. Children’s educational needs, travel needs, and financial goals approaching the deadline are a few reasons why individuals choose a SWP option.

What are the withdrawal options under an SWP scheme?

The withdrawal options under the SWP Scheme are determined by the frequency of withdrawals. An investor can withdraw their funds on a monthly, quarterly, semi-annual, or annual basis. Withdrawals can be made from either the capital or the appreciated portion of the account. Withdrawals may have a negative impact on the investment’s value. In this case, the SWP calculator can assist in determining the final amount. Hence, it’s a good idea to think about your goals and needs before choosing a plan.

What are the benefits of SWP?

For retirees, it is a source of regular fixed income and for employees, it is a source of additional income. If carefully planned, an SWP can be a source of steady income to meet financial goals. An SWP allows a tax benefit on long-term capital gains up to ₹100,000, but gains above ₹100,000 are taxable.

Is SWP a good option?

The SWP is a better choice in volatile markets. Investors can keep their money in the mutual fund while making partial withdrawals. As a result, investors can expect a consistent return on their investments. Investors can use the SWP option to generate a secondary income in addition to their fixed income.

Which is better, profit from SWP or dividend?

SWP is better than dividend plans. This is because dividends are taxable in the hands of investors according to their income-tax slab rate. Also, dividends above ₹5,000 are subject to TDS of 10%. In SWP plans, investors are liable to pay tax only for gains above ₹100,000.

This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Upstox does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Upstox makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.

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