SIP + SWP Calculator
Plan your wealth-building (SIP) and retirement income (SWP) phases in one calculator.
Bottom line: A SIP + SWP strategy builds wealth first through a Systematic Investment Plan (SIP), then pays a regular monthly income through a Systematic Withdrawal Plan (SWP). This free calculator shows your accumulated corpus, how long your withdrawals last, and whether your income is sustainable. It is built for salaried investors, retirees, and anyone planning FIRE (Financial Independence, Retire Early).
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How to Use the SIP + SWP Calculator in 3 Steps
Direct answer: Enter your SIP details to build a corpus, set your SWP withdrawal and duration, then read the sustainability result to see if your income lasts.
Enter your monthly SIP amount, duration, and expected return to build your corpus.
Specify your monthly withdrawal, withdrawal years, and expected return during retirement.
Check corpus, total withdrawn, remaining balance, and whether your SWP is sustainable.
What Is SIP + SWP and Why Use Both?
Direct answer: SIP + SWP is a two-phase strategy — you invest a fixed amount monthly (SIP) to build a corpus, then withdraw a fixed amount monthly (SWP) for income while the balance keeps earning returns.
A complete investment lifecycle has two phases: the accumulation phase (building wealth through SIP) and the distribution phase (drawing income through SWP). Using both tools together allows you to plan a full retirement strategy in one place.
SIP (Systematic Investment Plan)
SIP is a method of investing a fixed amount in a mutual fund at regular intervals (monthly). It benefits from rupee cost averaging — buying more units when NAV is low and fewer when high. Over 15–25 years, the compounding effect on equity fund returns (12–15% historical CAGR) can multiply your investment 8–20×.
SWP (Systematic Withdrawal Plan)
SWP is the reverse — you withdraw a fixed amount monthly from your accumulated corpus. The remaining corpus continues earning returns. With a well-sized corpus and reasonable withdrawal rate, you can create a perpetual income stream that outlasts your retirement.
The 4% Rule — Is Your SWP Sustainable?
Direct answer: Withdraw around 4% of your corpus per year (about 0.33% monthly) to keep an SWP sustainable for roughly 30 years at a 7% real return.
The "4% rule" (from Trinity Study) says withdrawing 4% of your corpus annually (i.e., 0.33% monthly) is sustainable for 30 years at a ~7% real return. At 8% nominal return with 6% inflation (2% real), a withdrawal of 2% of corpus annually is perpetual. For fund category rules and taxation, refer to the Association of Mutual Funds in India (AMFI).
Example: A corpus of ₹2 crore at 8% return → max perpetual monthly SWP ≈ ₹2Cr × 8% ÷ 12 = ₹1,33,333/month (if you withdraw exactly the interest earned).
Tax on SWP Withdrawals
- Equity MF: LTCG (holding >1 year) at 10% above ₹1L/year. STCG at 15%.
- Debt MF: Taxed at your income tax slab rate (no indexation benefit from FY24).
- Only the gain component of each SWP is taxable, not the principal. Each redemption is partly principal + partly gain.
SIP SWP Calculator — Plan Investment & Monthly Income
This SIP SWP calculator combines wealth creation and income planning in one tool. Build your corpus with a systematic investment plan, then draw a regular income through a systematic withdrawal plan. It works as a SIP SWP lumpsum calculator too, helping you model both accumulation and withdrawal phases together.
Best SWP Plan in India
Finding the Best SWP Plan in India means balancing sustainable withdrawals against expected returns. Use this best SIP SWP calculator to compare scenarios and pick the plan that keeps your corpus growing while paying regular income.
SIP SWP Plan & Best SWP Plan
A well-structured SIP SWP Plan lets you invest during your earning years and withdraw during retirement. Whether you want the Best SWP Plan for growth or income, this tool projects corpus, withdrawals, and remaining balance instantly.
HDFC SWP Plan & SBI SIP SWP Calculator
Planning an HDFC SWP Plan or using an SBI SIP SWP calculator? The math is identical across fund houses. This universal tool also serves as an HDFC SIP SWP calculator, so you can plan withdrawals from any AMC in one place.
Best SWP for Monthly Income
Retirees seeking the Best SWP for monthly income can model a fixed monthly withdrawal against expected returns. The SWP calculator monthly view shows exactly how long your income lasts based on your corpus and withdrawal rate.
SIP SWP Calculator with Inflation
A smart SIP SWP calculator with inflation mindset accounts for rising living costs. Keep a buffer so your real monthly income holds its purchasing power year after year, making this the Best SWP calculator for long-term retirement planning.
SIP Calculator & SIP SWP Calculator Excel
Prefer spreadsheets? While a SIP SWP calculator Excel template requires manual formulas, our free SIP calculator automates the entire projection online — instantly showing corpus, gains, withdrawals, and sustainability without any manual setup.
Frequently Asked Questions
Can SWP replace a pension?
Direct answer: Yes, if your corpus is large enough. A ₹1–2 crore corpus earning 8–10% can sustain monthly withdrawals of ₹50,000–₹1,50,000 for 25–30 years without depleting. Build sufficient corpus through SIP before switching to SWP.
What happens if SWP withdrawal exceeds returns?
Direct answer: The corpus depletes over time. This calculator shows the remaining balance so you can check sustainability. Keep the SWP withdrawal below the corpus monthly return to never deplete the principal.
Which mutual fund type is best for SWP?
Direct answer: Balanced advantage funds or hybrid equity funds are popular for SWP because they offer equity-like growth with lower volatility. Avoid debt funds for long SWP periods due to lower returns.
What is the best SWP for monthly income?
Direct answer: The best SWP for monthly income keeps your withdrawal at or below the corpus monthly return. For an 8% return corpus, withdrawing about 0.5% monthly keeps the principal intact for the long term.