SBI SWP Calculator

An independent SBI SWP calculator

Independent calculator: this page is not run by, affiliated with or endorsed by SBI Mutual Fund or State Bank of India. It uses a transparent month-by-month formula so you can check an SWP plan yourself. For scheme-specific rules — minimum SWP amount, available dates, exit loads — read the scheme information document or ask the fund house.

Retirement income from a lump sum

Many investors put a retirement benefit — gratuity, EPF or a matured FD — into a mutual fund and take a monthly SWP. Before you do, use the SBI SWP calculator to answer three questions: how much the corpus can pay each month, how long that lasts if you raise it every year, and what it is worth after inflation. The table shows the largest level monthly SWP at 8% for common corpus sizes:

SWP vs keeping money in a bank FD

FD interest is paid like a salary and is guaranteed, but all of it is taxed at your slab rate each year. An SWP from a mutual fund is not guaranteed, but only the gain part of each payment is taxed. For investors in higher tax slabs, an SWP can leave more in hand — at the cost of market risk.

How SWP withdrawals are taxed in India

Each SWP payment redeems units, and only the gain on those units is taxed — the part that is your own capital coming back is not. Units are redeemed first-in, first-out. Under the rules in force from 23 July 2024:

• Equity-oriented funds: units held over 12 months — long-term capital gains taxed at 12.5% above ₹1.25 lakh of such gains a year; units held 12 months or less — short-term gains taxed at 20%.
• Debt funds bought on or after 1 April 2023: gains are added to your income and taxed at your slab rate, however long you hold them.

Tax rules change with Union Budgets, so check the current rules or ask a tax adviser before planning withdrawals.