The most advanced SIP & SWP Calculator on the web. Seamlessly plan your investments and retirement income with vivid clarity.
Understanding the tools at your disposal is the first step toward effective financial planning. Our calculator is designed to demystify two of the most powerful tools for mutual fund investors: the Systematic Investment Plan (SIP) and the Systematic Withdrawal Plan (SWP).
A SIP is a disciplined investment approach where you invest a fixed amount of money at regular intervals (usually monthly) into a mutual fund scheme. Instead of making a large one-time investment, you invest smaller amounts over time. This strategy helps in averaging out the cost of your investment and harnesses the power of compounding.
An SWP is the reverse of a SIP. It allows you to withdraw a fixed amount of money from your mutual fund investment at regular intervals. This is an ideal solution for generating a regular cash flow from your investments, especially during retirement. It provides a steady income stream while allowing the remaining investment to continue growing.
Meet Mr. Sharma (30). He decides to invest ₹10,000/month in an Equity Mutual Fund via SIP for his retirement at age 60.
Moral: It's not just about starting early; it's about increasing your investment as you grow.
| Feature | SIP (Equity MF) | PPF | Fixed Deposit (FD) |
|---|---|---|---|
| Expected Returns | 12% - 15% (High) | 7.1% (Moderate) | 6% - 7% (Low) |
| Risk Profile | High (Market Linked) | Risk-Free (Govt Backed) | Low Risk |
| Liquidity | High (Exit Load < 1 yr) | Low (15 Year Lock-in) | High (Penalty applies) |
| Taxation | LTCG > ₹1.25L taxed @ 12.5% | Exempt (EEE) | Taxed as Income |
Yes, absolutely. This is a common strategy for retirement planning. You accumulate a corpus using SIP during your working years and then switch to SWP to generate a monthly pension-like income post-retirement. Our calculator specifically models this seamless transition.
Generally, yes. SWP from equity or hybrid mutual funds has the potential to offer higher returns than fixed deposits over the long term. Additionally, SWP is more tax-efficient because you are only taxed on the capital gains portion of the withdrawal, whereas FD interest is fully taxable at your slab rate.
A "Step-up" SIP means you increase your monthly investment amount by a certain percentage every year (e.g., as your salary increases). This significantly boosts your final corpus. Similarly, a "Step-up" SWP means you increase your withdrawal amount annually to combat inflation.
Financial experts often recommend the "4% rule," suggesting you withdraw 4% of your corpus annually. However, this depends on market conditions and your lifespan. Use our Sequence of Returns Risk Analyzer to test if your withdrawal rate is sustainable during market crashes.
In a rising market, Lump Sum often wins mathematically. However, SIP is psychologically easier and safer for volatile markets as it benefits from Dollar Cost Averaging, reducing the risk of investing a large amount at a market peak.
Yes, in the short term. Since SIPs in equity mutual funds are market-linked, the value can fluctuate. However, historical data shows that over the long term (7-10+ years), the probability of negative returns in a diversified fund is negligible.
Use our advanced calculator to model your SIP investments and plan your SWP withdrawals to see how you can achieve your financial goals, whether it's building a retirement corpus, funding your child's education, or creating a passive income stream.