TAX-EFFICIENT PENSION TOOL

SWP Calculator

Plan regular, predictable monthly cashflows from your accumulated corpus while keeping the remaining principal invested for compounding growth.

₹
₹5 Lakhs₹2.5 Crores₹5 Crores
₹
₹5,000 / mo₹1.5 Lakhs / mo₹3 Lakhs / mo
%
4% (Conservative Debt)9% (Balanced Advantage)18%
Yrs
1 Year15 Years30 Years
Total Cashflow Withdrawn
₹ 63.00 L
Initial Corpus
₹ 50.00 L
Remaining Corpus
₹ 59.46 L
Total Value Delivered:₹ 1.22 Cr
Withdrawn (51%)Remaining (49%)
The SWP Tax Advantage

Why SWP Beats Fixed Deposit Interest

Unlike bank FD interest which is taxed at your peak slab rate with TDS, each SWP monthly withdrawal is treated as part capital return and part capital gains—drastically reducing your effective tax liability.

Monthly Deposit in Bank:₹35,000/mo
Total Money Enjoyed:₹ 63.00 L
Left for Successors:₹ 59.46 L
Inquire About SWP Options

Yearly Withdrawal & Balance Schedule

Track your cumulative monthly withdrawals and remaining corpus across 15 years.

YearCumulative WithdrawnRemaining Invested Corpus
Year 1₹ 4,20,000₹ 50,31,269
Year 2₹ 8,40,000₹ 50,65,471
Year 3₹ 12,60,000₹ 51,02,882
Year 4₹ 16,80,000₹ 51,43,802
Year 5₹ 21,00,000₹ 51,88,560
Year 6₹ 25,20,000₹ 52,37,518
Year 7₹ 29,40,000₹ 52,91,067
Year 8₹ 33,60,000₹ 53,49,640
Year 9₹ 37,80,000₹ 54,13,708
Year 10₹ 42,00,000₹ 54,83,786
Year 11₹ 46,20,000₹ 55,60,437
Year 12₹ 50,40,000₹ 56,44,279
Year 13₹ 54,60,000₹ 57,35,986
Year 14₹ 58,80,000₹ 58,36,295
Year 15₹ 63,00,000₹ 59,46,014

How to Protect Your Capital with SWP

  • Follow the 6-8% Safe Withdrawal Rule: Keep annual withdrawals below the portfolio's expected rate of return so your capital remains perpetual.
  • Choose Hybrid/Balanced Advantage Funds: Dynamic asset allocation shields your corpus from major equity corrections.
  • No Fixed Lock-In: Unlike insurance annuities, your money remains fully liquid with flexibility to modify or stop payouts anytime.

Tax Efficiency of SWP Explained

Under Indian income tax laws, each monthly SWP transaction is treated as a unit redemption rather than income from other sources:

  • • No TDS (Tax Deducted at Source) deducted on domestic mutual fund redemptions.
  • • Equity LTCG gains are taxed at concessional rates above the annual threshold.
  • • Far lower effective tax liability than Bank Fixed Deposit interest.

*Disclaimer: The results shown are illustrative and based on mathematical simulations with assumed rates of return. They do not constitute financial advice or guarantee actual returns or cashflow continuity. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing.

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