How an SWP works
Each month, a fixed amount is redeemed from your investment and paid to your bank account. The rest keeps earning returns. If the returns are larger than your withdrawals, the balance can even grow; if they're smaller, the balance falls and eventually runs out.
With ₹50 lakh at 8% a year, you could take about ₹33,333 a month without touching your capital. Taking ₹30,000 a month leaves about ₹68.46 lakh after 20 years.
Questions people ask
What is a systematic withdrawal plan?
An SWP takes a fixed amount out of your mutual fund investment every month, while the rest stays invested. It is often used for a regular income in retirement.
How much can I withdraw without running out?
If you withdraw no more than the return your money earns, the corpus never falls. Withdrawing more uses up capital, and the calculator shows how long it lasts.
How are SWP withdrawals taxed?
Each withdrawal is part capital and part gains; only the gains are taxed, as capital gains. That often makes an SWP more tax-efficient than interest from a fixed deposit.
Method and sources
Withdrawals at the start of each month (raised yearly by the step-up, if any); the balance earns the assumed return compounded monthly. Taxes and exit loads are not included. Returns are assumed, not guaranteed. How we calculate.
Last reviewed 22 Oct 2026 by the WealthFeedz team.