SWP · sustainable withdrawal
20 years
drawing ₹60,000 / month from ₹1.00 Cr · stepping up 6%/year for inflation
The outcome
₹2,44,56,539
total withdrawn · nominal rupees
₹2,29,39,227
after LTCG (₹15.2 L tax)
Corpus over time
Explained
An SWP (Systematic Withdrawal Plan) is the mirror of an SIP. Instead of putting a fixed amount in every month, you take a fixed amount out. The rest keeps compounding at your assumed return. Because each redemption is only the gain portion that's taxable (not the full amount), and because equity-classified funds get LTCG at 12.5% above the ₹1.25 L annual exemption, SWP is one of the most tax-efficient ways to draw income from a corpus.
This projection paid ₹15.2 L in LTCG across the whole horizon — an effective tax rate of 6.20% on the total withdrawn.