LIC SWP Calculator
Evaluate remaining balance and depletion schedules for regular monthly systematic withdrawals from mutual funds or capital reserves.
| Year | Opening Balance | Total Withdrawn | Interest Accrued | Closing Balance |
|---|---|---|---|---|
| Year 1 | ₹10,00,000 | ₹96,000 | ₹99,351 | ₹10,03,351 |
| Year 2 | ₹10,03,351 | ₹96,000 | ₹99,702 | ₹10,07,053 |
| Year 3 | ₹10,07,053 | ₹96,000 | ₹1,00,089 | ₹10,11,142 |
| Year 4 | ₹10,11,142 | ₹96,000 | ₹1,00,518 | ₹10,15,659 |
| Year 5 | ₹10,15,659 | ₹96,000 | ₹1,00,991 | ₹10,20,650 |
| Year 6 | ₹10,20,650 | ₹96,000 | ₹1,01,513 | ₹10,26,163 |
| Year 7 | ₹10,26,163 | ₹96,000 | ₹1,02,090 | ₹10,32,253 |
| Year 8 | ₹10,32,253 | ₹96,000 | ₹1,02,728 | ₹10,38,982 |
| Year 9 | ₹10,38,982 | ₹96,000 | ₹1,03,433 | ₹10,46,414 |
| Year 10 | ₹10,46,414 | ₹96,000 | ₹1,04,211 | ₹10,54,625 |
| Year 11 | ₹10,54,625 | ₹96,000 | ₹1,05,071 | ₹10,63,696 |
| Year 12 | ₹10,63,696 | ₹96,000 | ₹1,06,021 | ₹10,73,717 |
| Year 13 | ₹10,73,717 | ₹96,000 | ₹1,07,070 | ₹10,84,787 |
| Year 14 | ₹10,84,787 | ₹96,000 | ₹1,08,229 | ₹10,97,016 |
| Year 15 | ₹10,97,016 | ₹96,000 | ₹1,09,510 | ₹11,10,525 |
₹11,10,525
Compound balance left in the account.
• SWP allows you to withdraw a fixed amount monthly, while the remaining balance continues to earn returns.
• If withdrawals exceed the compounding returns, the principal capital will gradually reduce over time.
SWP Working Mechanics
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount of money at regular intervals (monthly, quarterly) from an active mutual fund scheme, while the remaining balance continues to grow at an estimated interest rate.
- Capital Growth: Remaining capital compounds over the investment duration.
- Rupee Cost Averaging: Redeeming units regularly averages out market fluctuations.
Tax Efficiency of SWP
SWPs are highly tax-efficient compared to dividend payouts or bank FDs because only the capital gain portion of each withdrawal is taxable, rather than the entire withdrawal amount.
Frequently Asked Questions (FAQ)
What is the difference between SWP and SIP?
SIP (Systematic Investment Plan) is used for accumulating wealth by regular monthly deposits. SWP (Systematic Withdrawal Plan) is used for generating regular monthly income by phased withdrawals from an accumulated pool.
How does the SWP calculator handle capital depletion?
The calculator project a yearly ledger, subtracting your annual withdrawals from the capital while compounding the remaining balance at your chosen interest rate. If withdrawals exceed growth plus principal, the capital will deplete to zero.
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