SWP Calculator

Model monthly withdrawals from your investment — see remaining balance, total withdrawn, and depletion warnings.

Withdrawal plan

Remaining balance

₹0

Inflation adjusted balance

₹0

Total withdrawn

₹2,39,95,636

Initial investment

₹1,00,00,000

Corpus flow

Compare what you started with, what you took out, and what remains.

Warning: Your funds may run out around year 22 with these assumptions.

Before setting up a SWP

1Keep 1–2 years of withdrawals in a liquid or ultra-short fund so you don't have to redeem equity during a market downturn.
2Choose a balanced or hybrid fund for SWP if you want lower volatility — pure equity funds can have months of negative returns.
3Review the tax treatment of SWP redemptions — each withdrawal is partly capital gain and partly return of capital, affecting your tax liability.
4Avoid setting withdrawal amounts higher than the expected annual return — this erodes the principal and leads to faster depletion.
5Increase withdrawal amounts slowly (3–5% per year) rather than matching full inflation, to extend how long the corpus lasts.
6Reassess your SWP annually — if the portfolio drops significantly, consider temporarily reducing withdrawals to preserve the corpus.

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What is this?

A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed or increasing amount from an invested portfolio each month while the remaining balance continues to earn returns. This calculator helps you check sustainability — whether your withdrawals can last through retirement or a planned spending period without running out.

Formula

Each month: balance = (previous balance × (1 + monthly return)) − monthly withdrawal. Annual increases adjust the withdrawal amount per your settings.

How to use

Enter your initial investment, expected annual return, monthly withdrawal amount, annual withdrawal increase, time period, and inflation rate. Check the remaining balance and look for any depletion warning.

FAQ

What happens if withdrawals exceed returns?

Your investment balance shrinks and can eventually reach zero. The calculator will warn you with an estimated depletion year when the funds run out under your assumptions.

What is a Systematic Withdrawal Plan used for?

Investors use SWPs to take regular cash from a portfolio — common in retirement or for generating predictable income while keeping the rest invested.

How do annual withdrawal increases work?

You can increase your monthly withdrawal each year (e.g. to keep up with living costs). Higher annual increases drain the balance faster unless investment returns keep pace.

Are taxes included?

No. Capital gains and dividend taxes can reduce your actual cash in hand. Adjust your withdrawal or return assumptions to account for taxes.

Is a constant return realistic?

Markets fluctuate. A flat return is a planning simplification. Try lower return rates to stress-test whether your funds can last through market downturns.

Deeper guide

Use these notes to stress-test the calculator, understand what drives the result, and choose the right tool for the decision you are making.

Key assumptions

The SWP projection assumes one constant return, one withdrawal pattern, and one annual increase rate for withdrawals if enabled. It does not model taxes, market crashes early in retirement, or the operational realities of redeeming from specific funds.

Worked example

A 1 crore corpus with a 40,000 monthly withdrawal may appear sustainable at one return assumption but fail much earlier if returns are lower or withdrawals rise faster each year. Even small increases to the withdrawal amount can materially shorten portfolio life.

How to interpret the result

A depletion warning does not mean the plan is impossible, but it does mean your margin of safety is thin under those assumptions. Watch how sensitive the end balance is when you reduce returns or increase annual withdrawal growth.

When to use this vs Retirement

Use SWP when you already have a corpus and want to test withdrawal sustainability. Use the Retirement calculator when you are still accumulating and need to estimate how large the corpus should be before retirement begins.