SWP Calculator — Systematic Withdrawal Plan
Enter your corpus, monthly withdrawal and expected return rate to see how long your savings last, the total amount withdrawn, and a month-by-month balance curve.
%
xhur
Return exceeds withdrawal — corpus sustains indefinitely
- 1
Monthly rate
r = 8% ÷ 12 ÷ 100 = 0.006667 - 2
Growth factor (1+r)ⁿ
1.006667ⁿ (n = 240) = 4.9268 - 3
Corpus growth term
1,000,000 × 4.9268 = 4,926,802.77 - 4
Withdrawal drawn
(5,000 ÷ 0.006667) × (4.9268 − 1) = 2,945,102.08 - 5
Remaining corpus
4,926,802.77 − 2,945,102.08 = 1,981,700.69
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SWP balance after n months = P·(1+r)ⁿ − W·[(1+r)ⁿ−1]/r, where r is the monthly rate. If W > P·r, the corpus runs dry after log(W/(W−P·r))/log(1+r) months; if W ≤ P·r, returns cover withdrawals indefinitely. Enter corpus, withdrawal amount, annual return and period to see the balance curve and depletion date.
Formula
How this is calculated
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP: instead of investing a fixed amount each month, you withdraw a fixed amount from an existing corpus while the remainder continues to earn returns. Each month the balance grows by the periodic rate r (= annual rate ÷ 12 ÷ 100), then shrinks by the withdrawal W. The compound formula for the balance after n months is B(n) = P·(1+r)ⁿ − W·[(1+r)ⁿ−1]/r.
If your monthly withdrawal W is at most equal to P×r — the interest your corpus earns that month — withdrawals are entirely covered by returns and the principal stays flat or grows. This is a "sustainable" SWP. If W > P×r, the corpus gradually depletes and reaches zero after n = log(W/(W−P·r)) / log(1+r) months.
Assumptions and limits: the annual return is assumed constant throughout the period (a simplification — actual equity returns fluctuate). Tax on withdrawals (e.g., capital-gains tax on mutual fund redemptions) is not modelled and can significantly affect real outcomes. The figures here are estimates for planning purposes.
Mistoqsijiet frekwenti
Any withdrawal W ≤ P × (annual return ÷ 1200) is sustainable — you are spending only the interest. For example, a ₹10 lakh corpus at 8% p.a. earns ≈ ₹6,667/month in interest, so any withdrawal below that keeps the principal intact indefinitely.
SIP (Systematic Investment Plan) adds a fixed amount to an investment each month, building a corpus over time. SWP withdraws a fixed amount from an existing corpus — the reverse flow. SWP is commonly used for retirement income or regular cash-flow needs from accumulated savings.
No — the calculator handles r = 0 correctly as a linear depletion: B(n) = P − W×n, depleting in P/W months. This is also the correct result if you hold cash without any investment return.
Magħruf ukoll bħala
TG we-Calculate Editorial Team. (2026). SWP Calculator — Systematic Withdrawal Plan [Online calculator]. TG we-Calculate. https://we-calculate.com/mt/calculator/swp-calculator
TG we-Calculate Editorial Team. "SWP Calculator — Systematic Withdrawal Plan." TG we-Calculate. 2026. https://we-calculate.com/mt/calculator/swp-calculator.
TG we-Calculate Editorial Team, "SWP Calculator — Systematic Withdrawal Plan," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/mt/calculator/swp-calculator
@misc{wecalculate_swp_calculator, title = {SWP Calculator — Systematic Withdrawal Plan}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/mt/calculator/swp-calculator}}, year = {2026}, note = {TG we-Calculate} }
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