SWP Calculator
A systematic withdrawal plan (SWP) takes a fixed amount out of an investment every month, turning a corpus into regular income — common in retirement. The question is how long the money lasts. This calculator withdraws your chosen amount each month while the remaining balance keeps earning the assumed return, then reports the balance left or when the corpus runs out. It also shows the level monthly withdrawal that would use up the corpus exactly over your chosen period. Mutual fund investments are subject to market risks; returns here are assumptions.
How to use the swp calculator
- Enter your starting corpus and the monthly amount you want to withdraw.
- Enter the expected return and the period you want the money to last.
- Optionally raise the withdrawal each year to keep pace with inflation.
- Compare your withdrawal with the sustainable level shown, and test lower returns.
Formula
Each month the withdrawal is taken first, then the remaining balance grows by the monthly rate i: balance = (balance − withdrawal) × (1 + i). The level withdrawal that exhausts a corpus B over n months is W = B × i ÷ (1 − (1 + i)−n) ÷ (1 + i).
Worked examples
₹50 lakh, ₹30,000 a month
At 8% for 20 years, ₹68,45,597.30 remains and you withdraw ₹72,00,000.00 in total. The level withdrawal this corpus can fund for the whole period is ₹41,545.04.
A larger withdrawal
Raising the withdrawal to ₹50,000 changes the outcome: corpus runs out in: 13 years 8 months.
Inflation-linked withdrawals
Withdrawals rising 6% a year from ₹30,000 change the result to — corpus runs out in: 17 years 1 month — because later withdrawals are bigger.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- A ₹1 crore corpus at 8% with ₹60,000 withdrawn monthly for 20 years. What is left?
Show answer
Balance left after the period: ₹1,36,91,194.60 · Total withdrawn: ₹1,44,00,000.00
Common mistakes to avoid
- Withdrawing more than the corpus can sustain, especially in the early years.
- Assuming steady returns. A poor market early on can shorten the corpus’s life.
- Ignoring inflation, which erodes a fixed withdrawal’s purchasing power.
- Forgetting taxes on withdrawals.
- Not keeping an emergency reserve outside the plan.
Frequently asked questions
What is an SWP?
A systematic withdrawal plan: regular fixed withdrawals from a mutual fund or similar investment.
How long will my corpus last?
Enter your numbers; the calculator shows the balance left or when it runs out.
What withdrawal rate is sustainable?
Many planners use about 3–4% a year of the starting corpus for long retirements, but it depends on returns and time.
Is an SWP better than a dividend plan?
An SWP gives predictable cash flow and flexible tax treatment; dividends vary and are not assured. Consult an adviser for your situation.
Is this advice?
No. Mutual fund investments are subject to market risks; this is an educational estimate.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.