SWP Withdrawal Calculator
Draw a monthly income from a lump sum and find out how long it lasts — the question that matters most once you stop earning.
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How it works
A systematic withdrawal plan does the opposite of a SIP: you take a fixed amount out each month while the remainder stays invested and keeps growing. Whether the pot survives depends entirely on whether growth outpaces withdrawals.
There is a threshold worth knowing. If your monthly withdrawal is below the monthly return on the balance, the corpus grows despite the withdrawals and lasts indefinitely. One rupee or cent above it and the balance begins a decline that accelerates every year.
Each month: balance = (balance − withdrawal) × (1 + r)
- Corpus — the lump sum you start with
- Withdrawal — the fixed amount taken out at the start of each month
- r — the monthly rate of return on whatever remains invested
Worked example
A 10,000,000 corpus, withdrawing 95,000 a month, earning 9%
Inputs
Results
Drop the withdrawal to 75,000 and it lasts forever, because that exactly matches the monthly return. The extra 20,000 a month is what costs you the capital — and it runs out after seventeen years.
Frequently asked questions
What is a safe withdrawal rate?
The figure shown as "sustainable withdrawal" is the amount that exactly matches your assumed return, leaving the capital untouched. Most planners advise going below it, because a run of poor early years does disproportionate damage.
Does this account for inflation?
No — the withdrawal stays flat in nominal terms. Real spending power falls each year, so either raise the withdrawal manually over time or enter a return net of inflation to think in today’s money.
Why does the order of returns matter?
This model assumes a steady return. In reality a poor first few years while you are withdrawing does lasting damage, because there is less capital left to recover when markets turn. That is sequence-of-returns risk, and it argues for a lower withdrawal than the maths alone suggests.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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