SIP vs SWP Calculator
Compare Systematic Investment Plans (SIP) and Systematic Withdrawal Plans (SWP) to optimize your investment and income strategies
Investment Parameters
15 years
12%
5%
₹10,000
₹10,00,000
₹10,000
Comparison Results
SIP Final Value
₹50,22,000
SWP Final Value
₹28,45,000
SIP Total Invested
₹18,00,000
SWP Total Withdrawn
₹18,00,000
Best Strategy
SIP
Growth Comparison Over Time
Detailed Comparison
| Parameter | SIP (Systematic Investment) | SWP (Systematic Withdrawal) |
|---|---|---|
| Final Corpus Value | ₹50,22,000 | ₹28,45,000 |
| Total Invested/Withdrawn | ₹18,00,000 | ₹18,00,000 |
| Net Gain | ₹32,22,000 | ₹10,45,000 |
| Annualized Return | 12.0% | 8.5% |
| Strategy | Wealth Accumulation | Regular Income Generation |
| Best For | Long-term financial goals | Retirement income |
Understanding SIP vs SWP
Systematic Investment Plan (SIP)
- Regular investments of fixed amounts at fixed intervals
- Ideal for long-term wealth creation
- Benefits from rupee cost averaging
- Flexible investment amounts and frequencies
- Disciplined approach to investing
- Power of compounding over time
- Best for achieving financial goals like retirement, education, or buying a home
- Low minimum investment (₹500/month)
Systematic Withdrawal Plan (SWP)
- Regular withdrawals from your existing investment
- Ideal for generating regular income
- Helps manage cash flow during retirement
- Flexible withdrawal amounts and frequencies
- Tax-efficient way to receive income
- Helps preserve capital while providing income
- Best for retirees or those needing regular income
- Can be combined with SIP for balanced approach
Which to Choose?
- Choose SIP if you’re in wealth accumulation phase
- Choose SWP if you need regular income from investments
- SIP is best for long-term financial goals (10+ years)
- SWP is ideal for retirement income or regular cash flow
- Many investors use SIP for accumulation and switch to SWP for distribution
- SIP helps build corpus, SWP helps utilize it
- Consider combining both strategies for comprehensive financial planning