SWP Calculator
Find out how long your investment lasts — or how much remains — under a fixed monthly withdrawal.
Market-linked returns are not guaranteed — this is an assumption.
Balance remaining
₹2,14,639
After 20 years of withdrawals
SWP tips
- Keep your withdrawal rate below your expected long-term return to avoid depleting the corpus.
- Test a few different monthly withdrawal amounts to see how sensitive the depletion timeline is to small changes.
- Remember that real returns aren't smooth — a downturn early in your withdrawal period is riskier than this steady-return projection suggests.
How it's calculated
A Systematic Withdrawal Plan invests a lump sum, then withdraws a fixed amount every month while the remaining balance keeps earning the assumed return. We simulate this month by month — applying that month's return, then deducting the withdrawal — and stop as soon as the balance would go negative, since the corpus can't be depleted further than zero.
balance = balance × (1 + monthly return) − monthly withdrawal
Example
Withdrawing ₹8,000/month from a ₹10,00,000 corpus at an assumed 8% return leaves roughly ₹2,14,639 remaining after 20 years — having withdrawn ₹19,20,000 in total, more than the corpus you started with, because it kept earning returns as you drew from it.
About Systematic Withdrawal Plans
SWP is the reverse of a SIP: instead of building a corpus with regular investments, you draw a regular income from a corpus you already have, while what's left stays invested and continues to grow (or shrink, if withdrawals outpace returns).
How it works
You invest a lump sum (often from a maturing FD, a bonus, or a retirement corpus) into a mutual fund or similar market-linked investment, then set up fixed monthly withdrawals. Each month, the remaining balance earns a return before that month's withdrawal is deducted — if returns exceed withdrawals, the balance can even keep growing; if not, it gradually shrinks.
How to use it
- Set your initial investment (the lump sum you're starting with).
- Set your desired monthly withdrawal.
- Set an expected annual return — this is an assumption, since SWP investments are typically market-linked.
- Set how many years you want to project — the calculator will show you either the remaining balance, or exactly when the corpus runs out if it depletes sooner.
Strategies
A withdrawal rate below your expected return can sustain income indefinitely (the classic "safe withdrawal rate" concept from retirement planning); a rate above it will eventually deplete the corpus, just at different speeds. Use this calculator to test a few withdrawal amounts and see which one keeps your corpus lasting as long as you need it to.
Important caveats
- The expected return is an assumption — a real market-linked investment doesn't earn a smooth, constant return every month, so actual depletion timing will differ from this steady-state projection.
- Withdrawals from most SWP-eligible mutual funds are subject to capital gains tax, not shown here.
- A market downturn early in your withdrawal period is riskier than the same average return spread evenly — this calculator can't capture that "sequence of returns" risk.
Why it works
Each month is a simple compounding-then-subtracting step: the balance grows by the monthly return, then shrinks by the withdrawal. Repeating this simulates the real trajectory of an SWP far more accurately than trying to force it into a single closed-form formula, since the balance path (and whether/when it depletes) depends on every month's running total.
Benefits
- Turns a lump sum into a regular income stream while the remainder stays invested.
- Lets you directly compare different withdrawal amounts to see which one your corpus can sustain.
- Useful for retirement income planning, replacing or supplementing a pension.
Frequently asked questions
What happens if my withdrawal rate is too high?
If you withdraw more than your investment earns, the corpus shrinks a little more every month — slowly at first, then faster, until it runs out entirely. This calculator shows exactly when that happens (if it does) within your chosen projection period, so you can adjust before committing.
How is SWP different from just withdrawing from a savings account?
The remaining balance in an SWP stays invested (typically in a mutual fund) and keeps earning a market-linked return between withdrawals, unlike idle savings-account money. That's what lets a well-chosen withdrawal rate sustain many years of income without fully depleting the corpus.
Is the return during withdrawal guaranteed?
No — like a SIP or Lumpsum investment, the return you enter is an assumption. A market downturn early in your withdrawal period can deplete the corpus faster than this calculator's steady-return projection suggests.
Learn more from official sources
- AMFI (Association of Mutual Funds in India) — industry body for mutual fund investor education.
- SEBI — regulator for mutual funds and securities markets in India.
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