FAQ
Questions about SWP and this calculator
Short answers for the form on the homepage. Nothing here is personalised financial or tax advice.
What is an SWP in mutual funds?
A Systematic Withdrawal Plan (SWP) lets you redeem a chosen rupee amount from a mutual fund at a regular interval — usually monthly. The fund house sells enough units at that day’s NAV to pay you. The leftover units stay invested and can keep compounding.
How does this SWP calculator estimate corpus life?
It runs a month-by-month ledger. Each month the remaining corpus is grown at an effective monthly rate derived from your expected annual return, then the withdrawal is deducted. Optional inflation raises the withdrawal once a year. If the balance hits zero before your tenure ends, the tool reports how many months the money lasted. If it does not, you see the leftover corpus.
Is an SWP the opposite of an SIP?
In cash-flow terms, yes. An SIP buys units on a schedule while you are accumulating. An SWP sells units on a schedule while you need income. Many households use an SIP for decades, then switch the same corpus to an SWP in retirement. They are not tax mirrors and they do not guarantee returns.
Does a higher withdrawal always finish the corpus faster?
Usually, but not always in a straight line. If withdrawals stay below the rupee growth the corpus earns, the balance can rise even while you take income. Inflation step-ups, a weak return year, or starting too large a withdrawal relative to corpus are the usual reasons a plan depletes early.
Are SWP withdrawals tax-free in India?
No. Each instalment is a redemption. Only the capital-gains portion of the units sold is taxable, not the entire cash you receive. Equity-oriented and debt-oriented funds follow different holding-period and rate rules. This site does not compute tax.
Why do results differ from my AMC’s SWP calculator?
Fund houses may use a simple annual-rate-divided-by-12, ignore inflation, or assume a fixed NAV path. SwpRupee uses effective monthly compounding from the annual rate you type. Real schemes have changing NAVs, expense ratios, exit loads, and taxes. Treat every output as an educational estimate.
Can I use this calculator offline?
After the homepage loads once, the core calculator runs entirely in your browser. A small service worker keeps the page and script available if the network drops. Nothing is sent to a server to compute a result.
Which tenure should I type if I want income for life?
There is no reliable “for life” switch. Type the years you want to inspect — 20 and 30 are common — then look at leftover corpus and the runway estimate. Longevity, medical costs, and markets are not in the model. Pair any SWP with other income (EPF, NPS, rent, annuity) rather than asking one folio to cover an unknown lifespan.
Can I model quarterly withdrawals?
This version is monthly. For a quarterly plan, divide the quarterly rupee amount by three and treat it as a monthly SWP, or multiply tenure months accordingly and compare. The yearly table still gives a useful shape.
Does the calculator include expense ratio or exit load?
No. If you want a rougher after-cost feel, lower the expected annual return by the scheme’s TER and a little extra for friction. Exit loads are discrete and depend on when units were bought.
Why Indian number formatting?
Amounts use the en-IN grouping (lakhs and crores) because that is how most Indian statements and conversations describe corpus size. You can still type 5000000 without commas.