SWP Calculator
A Systematic Withdrawal Plan withdraws a fixed amount every month from an existing corpus, which continues to earn returns on whatever remains. This is the mirror image of a SIP, usually used to draw a regular income from accumulated savings.
Simulated month by month: each month the remaining balance grows at the monthly return rate, then the withdrawal is subtracted.
How to use this calculator
Enter your starting corpus, how much you plan to withdraw every month, an assumed annual return rate, and how many years you want to check. The calculator shows whether the corpus outlasts that period, and if so, how much remains.
What this doesn't account for
This assumes a constant monthly return and a fixed withdrawal amount with no adjustment for inflation over time; a withdrawal that doesn't rise with inflation buys less each year in real terms even if the corpus itself survives.
Frequently asked questions
How is SWP different from a fixed monthly income product?
SWP draws down an investment corpus that keeps growing (or shrinking) with market returns; a fixed-income product like an annuity typically guarantees the payout amount instead.
What happens if my withdrawal exceeds the return the corpus earns?
The corpus shrinks over time and will eventually deplete; this calculator shows exactly when, to the month, if that happens within the period you check.
Does this account for tax on each withdrawal?
No. Depending on the underlying investment, part of each SWP withdrawal may be treated as capital gains for tax purposes; this calculator shows gross cash flow only.
Should my withdrawal amount increase with inflation?
Many real SWP plans do increase the withdrawal over time to maintain purchasing power; this calculator assumes a fixed withdrawal amount for the whole period you check.
Can I use this to plan retirement income?
It can approximate one part of that question (will a given corpus support a given withdrawal), but see the dedicated retirement corpus calculator for working out how large a corpus you'd need in the first place.
This is a generic financial calculation, not investment, loan or tax advice specific to you. BrokerLens is not a SEBI-registered investment adviser.