SWP Calculator
A Systematic Withdrawal Plan is retirement's mirror image of a SIP: instead of investing monthly, you withdraw monthly while the remaining corpus keeps growing. The critical question — will the money outlast me? — is what this calculator answers.
The math is unforgiving and wonderful at once: ₹2 crore withdrawing ₹1 lakh/month at 8% return still leaves you money after 20 years. But raise the withdrawal to ₹1.5 lakh and the same corpus runs dry. Small differences, life-changing outcomes.
Four steps, thirty seconds.
Enter your starting corpus. Your retirement kitty, post-tax and ready.
Set your monthly withdrawal. Your planned monthly spending in retirement.
Set expected return and period. Post-retirement portfolios are usually conservative — 7–9% is a common assumption.
Read the verdict. 'Lasts' means the corpus survives the full period; 'runs out' tells you exactly when it empties. Adjust withdrawal or return until it lasts.
The method: month-by-month simulation — balance = balance × (1 + r/12) − withdrawal, until the corpus hits zero or the period ends.
Worked example: ₹2 crore corpus, ₹1 lakh/month withdrawal, 8% return, 20 years → you withdraw ₹2.4 crore total and still have ≈ ₹1.02 crore left. Growth outruns withdrawals.
Standard SWP simulation mathematics; withdrawal-at-month-end convention used by AMC SWP calculators.
The famous 4% rule (US data) suggests withdrawing 4% of the corpus in year one, adjusted for inflation after. In India, 4–5% is a common starting point for planning — this calculator lets you test your own number.
Each withdrawal is treated as a redemption: equity funds held 1+ year face 12.5% LTCG above ₹1.25 lakh/year; debt funds are taxed at your slab. Only the gain portion is taxed, not the full withdrawal.
SWP wins for most retirees: dividends are unpredictable and taxed in full at your slab, while SWP gives you control over amount and timing with capital-gains treatment.
Yes — retirement math should be conservative. Use 7–8% for a hybrid portfolio, and re-run yearly with your actual corpus.
That's 'sequence risk' — early crashes hurt SWPs badly. Keep 2–3 years of expenses in safe instruments so you never sell equity in a crash.
Disclaimer: Educational illustration only — not financial advice. Assumes constant returns and month-end withdrawals; real markets are volatile — keep a safety buffer.