How to use the SWP Calculator
- 1. Enter your corpusType the amount invested and the monthly withdrawal.
- 2. Set your assumptionsAdd an expected return, time and any yearly raise.
- 3. See the outcomeFind the balance left or the month the money runs out.
How an SWP is calculated
A Systematic Withdrawal Plan takes a fixed sum from your investment each month. The rest stays invested. Assumption used here: each withdrawal comes out at the start of the month (annuity-due), and the remaining balance then grows at (1 + r/12).
With a flat withdrawal, the end balance is B = C × (1 + i)^N − W × ((1 + i)^N − 1) / i × (1 + i), where i is r/12 and N is the number of months.
Worked example: ₹50,00,000 corpus, ₹40,000 a month, 8% a year, 20 years. You take out ₹96,00,000 in total, nearly double what you began with. The money earns ₹55,16,125 along the way, and ₹9,16,125 is left at the end.
When the money runs out
Withdraw too much and the balance falls faster each year, since less is left to earn. Take the same corpus but raise the withdrawal to ₹50,000. The money then runs out in year 14, month 8, well short of 20 years. The tool tells you the exact month and shows your final, smaller withdrawal.
The result also gives the highest withdrawal that lasts your full period. For this example it is ₹41,545 a month. Anything above that runs out early. As a basic check, ₹40,000 a month is more than the first month's return of about ₹33,000, so the corpus falls slowly from day one.
Plan for rising costs
A flat ₹40,000 buys less every year. The raise withdrawal each year box shows the effect of keeping up with prices. Try 5% or 6% and watch how much sooner the money runs out. Then check the numbers with the inflation calculator.
Returns are assumptions and are not guaranteed, and a fall early on hurts a withdrawal plan more than a late one. Tax is not included. If you want a fixed payout from the government, see the SCSS calculator. To work out the corpus you need first, use the retirement calculator.
Frequently asked questions
What if my withdrawal is more than my corpus?
The tool tells you the money runs out in the first month, and shows the highest withdrawal the corpus can support for your chosen period.
Does an SWP pay interest?
No. It sells units of your fund each month. Part of each withdrawal is your own money and part is gain.
What does money running out in year 14, month 8 mean?
It means that is the last month with any money to withdraw. That last withdrawal may be smaller than usual.
Is the SWP calculator free?
Yes. You enter your name and WhatsApp number once to see your result, and all other Uncodemy tools then open without the form.