Year-by-year balance
| Year | Monthly withdrawal | Withdrawn | Balance |
|---|
How it is calculated
Each month the withdrawal is taken out first and the remaining balance then grows at the monthly equivalent of your annual return. If you set an annual increase, the withdrawal rises once every 12 months.
Worked example
₹50 lakh at 8% with ₹30,000 withdrawn every month: the corpus earns more than you take out in the early years, so after 20 years about ₹61 lakh is still left, having already paid you ₹72 lakh. Raise the withdrawal by 6% a year to keep up with inflation and the money runs out after about 16½ years — try it above.
Frequently asked questions
What is an SWP?
A Systematic Withdrawal Plan redeems a fixed amount from your mutual fund every month. The rest stays invested and keeps earning returns, which makes SWPs popular for retirement income.
How much can I safely withdraw?
If your monthly withdrawal is less than the monthly return on your corpus, the corpus never runs out. A common rule of thumb is 4–6% of the corpus a year, adjusted for inflation.
How is SWP taxed?
Each withdrawal is treated as a redemption, so only the gains portion is taxed as capital gains — not the whole amount. That often makes SWPs more tax-efficient than interest income.
Results are estimates for educational purposes only and are not investment, tax or financial advice. Verify figures with your broker or advisor before acting on them.