Plan your monthly withdrawals smartly. Save or share your results with ease.
A Systematic Withdrawal Plan (SWP) is the strategic inverse of an SIP. While an SIP is designed to build a corpus, an SWP is designed to monetize it. This tool is essential for retirees, freelancers, or anyone looking to create a "self-made salary" from their accumulated investments. It allows you to withdraw a fixed amount at regular intervals while the remaining balance continues to stay invested and grow.
Our SWP Calculator helps you determine how long your money will last or exactly how much you need to save before you can "switch off" your professional income, with a special feature to account for the rising cost of living.
This calculator features two distinct modes to help you engineer a sustainable income stream that stands the test of time.
Mode 1: Portfolio Sustainability (Final Balance Mode)
Use this mode to see the future value of your portfolio after making regular withdrawals.
Mode 2: Goal Calculation (Required Corpus Mode)
Use this mode to find the exact "nest egg" required to support your desired lifestyle.
Standard SWPs often ignore the fact that ₹50,000 today will not buy the same groceries in 10 years. By using the Inflation Adjustment feature, the calculator automatically increases your withdrawal amount by the inflation percentage annually.
Our calculator uses a standard financial formula to determine the value of your remaining corpus after a series of periodic withdrawals.
The remaining corpus (FV) is calculated using the future value of an annuity formula, in reverse:
Main formula:
$$\mathbf{FV} = \mathbf{P} \times (1 + r)^{t} \;-\; \mathbf{W} \times \frac{r \times \left( (1 + r)^{t} - 1 \right)}{r}$$Where:
This formula accounts for both the growth of the remaining principal and the reduction of the corpus due to your withdrawals.
Sunil retires with a corpus of ₹2 Crores. He begins by withdrawing ₹1 Lakh per month. While he expects an annual return of 8%, he understands that rising prices will impact his expenses, so he factors in an inflation rate of 6%.
The calculator shows that since Sunil’s withdrawals increase every year to keep pace with inflation, his retirement corpus is depleted more aggressively than in a fixed withdrawal plan. This insight helps him realize that he may need a slightly higher starting corpus or a more balanced return strategy to sustain his retirement comfortably.
Aditi wants to retire comfortably and needs a monthly income of ₹1.5 Lakhs in today’s value. She wants this income to last for 30 years. While she expects an annual return of 9%, she also wants her withdrawals to keep pace with an inflation rate of 6%.
The calculator reveals that Aditi requires a retirement portfolio of approximately ₹4.15 Crores to sustain her desired lifestyle. Without factoring in inflation, she might have assumed that ₹2 Crores was sufficient, only to realize later that her purchasing power would be nearly halved by around year 12.
Below is an illustration of the year-on-year withdrawals and estimated balance corpus value:
| Year | Amount Withdrawn (₹) | Value of Balance Corpus (₹) |
|---|---|---|
| 1 | 7,20,000 | 97,08,000 |
| 2 | 7,20,000 | 94,38,720 |
| 3 | 7,20,000 | 91,90,205 |
| 4 | 7,20,000 | 89,60,324 |
| 5 | 7,20,000 | 87,47,661 |
| 6 | 7,20,000 | 85,50,712 |
| 7 | 7,20,000 | 83,68,914 |
| 8 | 7,20,000 | 81,99,741 |
| 9 | 7,20,000 | 80,42,692 |
| 10 | 7,20,000 | 78,96,276 |
| Total | ₹72,00,000 | ₹78,96,276 |
This case demonstrates how an SWP can provide a regular income while also preserving a significant portion of the principal.
