SIP SWP Calculator: with Step-Up Planning Guide

CALCULATION RESULTS

SIP Phase Results:

Total Maturity Amount: ₹

Total Investment Amount: ₹

Wealth Gained: ₹

SWP Phase Results:

Remaining Corpus (End of Tenure): ₹

Total Withdrawals: ₹

Sustainability Analysis:

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SIP Summary Table

Month Total Contribution (₹) Returns (₹) Total Value (₹)

SWP Summary Table

Month Withdrawals (₹) Remaining Corpus (₹) Returns Earned (₹)

SIP vs SWP Calculator: Which is Better for Regular Income?

Imagine you’re building a money machine: SIP (Systematic Investment Plan) fills it up, while SWP (Systematic Withdrawal Plan) takes money out. But which one gives you regular income without draining your savings? Let’s break it down like a coffee chat with your financial advisor.

SIP: The Savings Engine

  • What it does: Invests fixed amounts monthly (e.g., ₹10,000) in mutual funds.
  • Best for: Growing wealth over time. Example: A 10-year SIP at 12% returns = ₹23 lakhs.
  • Catch: No regular income—it’s like filling a bucket but not drinking from it.

SWP: The Income Tap

  • What it does: Withdraws fixed amounts monthly from your corpus (e.g., ₹20,000/month).
  • Best for: Retirement or post-goal income. Example: ₹50 lakhs at 8% returns = ₹33,000/month for 20 years.
  • Catch: Corpus reduces over time—like sipping from a shrinking juice box.

The Winner? Depends on Your Goals!

  • Need monthly income now? SWP wins. Use a SIP Calculator first to build your corpus.
  • Still saving for the future? SIP wins. Pair it with SWP later for a retirement paycheck.

Pro Tip: Start with SIP, switch to SWP when you retire. Think of it as "work now, chill later" mode.

Tax Savings with SIP and SWP: A Detailed Calculation Guide

Think of taxes as that annoying guest who shows up uninvited to your investment party. Here’s how to keep them from eating all your snacks (read: returns) with SIP and SWP:

SIP Tax Rules:

  • Equity Funds: Hold for 1+ years for Long-Term Capital Gains (LTCG) tax of 10% on profits over ₹1 lakh/year.
  • Debt Funds: Hold for 3+ years for 20% tax with indexation (adjusts gains for inflation).

SWP Tax Hacks:

  • Debt Fund SWP: Withdrawals after 3 years get indexation benefits. Example: ₹5 lakh withdrawal with indexed cost of ₹3 lakh = tax only on ₹2 lakh!
  • Equity Fund SWP: Each withdrawal is taxed as LTCG if units are over 1 year old.

Pro Tip: Mix SIP & SWP Smartly

  • Use SIP to build a corpus in equity funds (tax-friendly after 1 year).
  • Switch to debt fund SWP for withdrawals to slash taxes. Test this strategy with a SWP Calculator to see real savings.

Real-Life Example:

Rohit invests ₹10,000/month in equity SIP for 10 years (12% returns = ₹23 lakhs). He switches to debt SWP, withdrawing ₹30,000/month. After indexation, his taxable income drops by 40%!