Free SWP Calculator – See Exactly When Your Corpus Runs Out

What a Systematic Withdrawal Plan Does and How the Drawdown Is Simulated

A Systematic Withdrawal Plan, or SWP, is the mirror image of a SIP. Instead of paying a fixed amount in every month, you take a fixed amount out of a corpus you already hold, while whatever remains stays invested and keeps earning. This SWP calculator answers the only two questions that actually matter about that arrangement: how many months your corpus survives at the amount you want, and how much you could withdraw instead if you need it to last exactly N years. Retirees converting a provident fund payout into monthly income, people who have just received a maturity amount or an inheritance, and anyone building an income bridge before a pension starts use it to check whether a plan is sustainable or slowly self-destructing. The simulation runs month by month rather than with a single formula, because a real drawdown has an order of operations: balance = balance × (1 + i) − withdrawal. Here i is your monthly expected return, the annual rate divided by 12 and by 100, so 8% a year becomes 0.006667, and the withdrawal is applied at the end of the month after that month's growth. An annual step-up of s percent multiplies the withdrawal by (1 + s ÷ 100) every twelfth month. The month the balance first reaches zero is the depletion month. In the second mode the calculator inverts the drawdown to find the withdrawal that empties the corpus in exactly your chosen number of months, using W = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1) — algebraically the same equation as an EMI. Balances keep full precision through every month and are rounded only at display. Start with ₹10,00,000 and withdraw ₹8,000 a month expecting 8% a year. That corpus earns about ₹6,667 in the first month, so your ₹8,000 withdrawal eats roughly ₹1,333 of capital — a slow leak, not a haemorrhage. The calculator reports depletion in month 270, which is 22 years and 6 months, the same answer miniwebtool's SWP calculator publishes for these inputs. Stop the projection at ten years instead and you have withdrawn ₹9,60,000 while ₹7,56,072 is still invested, which is within a rounding whisker of the ₹7,56,200 Chola Securities publishes for the identical case. Raise the withdrawal to ₹15,000 and the picture changes hard: the corpus is gone in month 89, just 7 years and 5 months. The tool earns its place in three concrete situations. A 60-year-old who has received a ₹40,00,000 retirement settlement can find the monthly figure that lasts 25 years rather than guessing and running dry at 78. A family using an SWP as a salary replacement during a career break can test a two-year drawdown and see exactly what is left at the end. And anyone comparing an SWP against a bank fixed deposit's monthly interest payout can see the structural difference: the FD pays interest and returns your capital intact, while an SWP hands you capital plus growth and eventually exhausts both. Senior citizens often prefer an SWP for the tax treatment, since only the gain portion of each redemption is taxable rather than the whole payout. The pitfall that catches almost everyone is the sustainable threshold. Your corpus generates roughly corpus × i every month — ₹6,667 on ₹10,00,000 at 8% — and withdrawing at or below that leaves the principal untouched indefinitely. The calculator prints that number next to your withdrawal and says plainly when your corpus never depletes, instead of inventing a depletion month that does not exist. Two honest limits: a constant return cannot show sequence-of-returns risk, where poor markets in the first few years do far more damage than the same markets later; and tax, exit loads and fund charges are not deducted, so your net income is lower than shown. Build a margin. All of it is calculated in your browser, and your figures are never uploaded.

SWP Calculator Formula & Method

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