SWP Calculator
This SWP calculator shows how a systematic withdrawal plan plays out. Enter the amount invested, the monthly withdrawal, the expected return, and the period, and the SWP calculator gives the balance left at the end, the total withdrawn, how long the money lasts, and the largest monthly withdrawal the corpus can support.
Returns are estimates. Market investments do not earn a fixed rate.
Results
The SWP Calculator is part of our Investment collection. Browse more investment to size, convert, and check your work alongside this tool.
What the SWP calculator does
A systematic withdrawal plan pays you a fixed amount each month from an investment while the remaining balance keeps earning. The SWP calculator runs the plan month by month: the balance grows at the monthly rate, then your withdrawal comes out. If withdrawals outpace growth, the balance falls and the calculator tells you when it runs out. It also solves for the withdrawal that uses up the corpus exactly over your chosen period.
SWP formula
Each month the balance earns i = annual return ÷ 12, then the withdrawal W is paid:
The largest level withdrawal that empties the corpus P exactly after n months is the annuity payment:
The withdrawal that keeps the original capital untouched is simply P × i, the monthly growth.
SWP calculator example
1,000,000 invested, 10,000 withdrawn each month, 8% a year, for 10 years:
You receive 1,200,000 in total and still hold 390,180. Withdrawing up to 12,133 a month would use the whole corpus by the end of year 10, while about 6,667 a month leaves the original 1,000,000 intact.
How to use the SWP calculator
Enter the total amount invested, the monthly withdrawal you want, the return you expect each year, and the number of years you want the income. Press Calculate. If the money lasts the full period, the balance at the end shows what is left; if not, the calculator shows when it runs out. Compare your withdrawal with the maximum shown to see how much room you have.
Reading your SWP calculator result
If the withdrawal is below the monthly growth, the balance rises and the plan can run indefinitely. Between that level and the maximum, the balance shrinks but lasts the full period. Above the maximum, the money runs out early. Returns vary from year to year, and a run of poor years early in the plan hurts more than the same years later, so keep a margin below the maximum.
When to use a systematic withdrawal plan calculator
- Planning monthly income in retirement
- Checking whether a withdrawal is sustainable
- Comparing an SWP with a fixed deposit payout
- Setting withdrawals from a mutual fund corpus
- Seeing how much capital remains after a set period
Common SWP calculator mistakes
- Withdrawing the maximum. Leave a margin for bad years.
- Ignoring inflation. A fixed income buys less each year.
- Using an equity return for a debt fund. Match the rate to the fund.
- Forgetting tax. Gains in each withdrawal may be taxed.
Tips for using a withdrawal plan calculator
- Start with a withdrawal below the monthly growth if you can.
- Keep one or two years of income in a low-risk fund.
- Review the withdrawal once a year.
How much can I withdraw monthly with an SWP calculator?
A common starting point for long retirements is a yearly withdrawal of about 4% of the starting balance, raised with inflation. In the table above, 6,000 a month from 1,000,000 is 7.2% a year, which lasts forever at a steady 8% return; with real market swings and inflation, a lower rate gives more safety. The corpus itself usually comes from years of saving, and the SIP calculator shows what monthly investment builds it.
SWP vs FD and other monthly income from investment
Withdrawing units from a fund lets the rest stay invested, so the balance can still grow in good years. A fixed deposit or annuity gives a steady payout with no market risk. Some investors split the money: a few years of withdrawals in safe assets and the rest in growth funds. To value the part left invested at a fixed rate, use the compound interest calculator. If you need a lump sum on a set date instead of an income, the sinking fund calculator works backward from the target.
How long will my money last: 1,000,000 at 8%
| Monthly withdrawal | Yearly withdrawal rate | Money lasts |
|---|---|---|
| 6,000 | 7.2% | Never runs out |
| 8,000 | 9.6% | 22 years 6 months |
| 10,000 | 12.0% | 13 years 10 months |
| 12,000 | 14.4% | 10 years 3 months |
| 15,000 | 18.0% | 7 years 5 months |
SWP Calculator FAQ
How is SWP calculated?
Each month the balance grows by the monthly return and the withdrawal comes out. The SWP calculator repeats this for every month of the period.
How much can I withdraw monthly?
For 1,000,000 at 8% over 10 years, up to about 12,133 a month uses the whole amount. About 6,667 a month keeps the capital intact.
How long will my money last?
It depends on the withdrawal rate. At 8%, withdrawing 12,000 a month from 1,000,000 lasts about 10 years; 6,000 a month never runs out.
Is SWP better than a fixed deposit?
An SWP from a fund can earn more and may be taxed more lightly, but returns are not fixed. A deposit pays a guaranteed rate.