Is SWP better than a bank monthly income scheme?

SWP offers more flexibility (you choose the withdrawal amount and can stop anytime) and the underlying corpus stays invested, but unlike fixed schemes, both the returns and the corpus itself can fluctuate with the market.

Are SWP withdrawals taxed?

Each SWP withdrawal is treated as a partial redemption of mutual fund units and taxed as capital gains (short or long-term depending on holding period and fund type), not as regular income.

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Savings & investments

SWP Calculator

See how long a lump sum lasts against a fixed monthly withdrawal, or what's left after a chosen period.

Withdrawal details

Starting corpus ₹20,00,000

Monthly withdrawal ₹15,000

Expected annual return 8%

Outcome

Corpus lasts for

—

Total withdrawn (if it lasts)₹0

Monthly withdrawal as % of corpus0%

Balance after 10 years₹0

How SWP depletion is calculated

If monthly withdrawal W > corpus × monthly rate, the corpus eventually depletes:
Months to deplete = ln( W ÷ (W − P×i) ) ÷ ln(1+i)
P = corpus, i = expected monthly return, W = monthly withdrawal

If your withdrawal is smaller than the interest the corpus earns each month, the balance can theoretically last indefinitely — the "balance after 10 years" figure shows what happens either way.

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Figures are estimates for planning purposes only and do not constitute financial advice.