SWP Calculator
Plan your withdrawals from an existing corpus. See how long the portfolio lasts, the total amount withdrawn, and the balance remaining at the end of the period.
- Initial corpus
- $1,000,000
- Total withdrawn
- $1,200,000
- Remaining corpus
- $1,981,701
What is a Systematic Withdrawal Plan?
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 each month while the remaining balance continues to earn returns.
SWPs are commonly used after retirement or financial independence to create a steady monthly income from accumulated savings. The key question is: will the corpus last as long as you need it to? This calculator answers that directly.
How the SWP calculator works
Each month, your portfolio grows at the assumed monthly return, then the withdrawal is deducted:
If the balance falls below the monthly withdrawal, the remaining balance is paid out and the portfolio reaches zero. The calculator runs this simulation month by month and shows the total withdrawn, the remaining corpus, and — if applicable — when the portfolio depletes.
Assumptions
- Constant return. The calculator uses a fixed monthly return derived from your expected annual return. Real market returns vary, so treat the result as a planning estimate.
- Inflation not applied. Withdrawals are in nominal terms. To preserve purchasing power, consider increasing the withdrawal by the inflation rate each year.
- No tax on withdrawals. Tax treatment of withdrawals depends on your jurisdiction. Consult a financial adviser for post-tax planning.
How to make your corpus last longer
- Keep some equity. A higher expected return extends the portfolio's life significantly. A portfolio earning 8% lasts far longer than one earning 4% under the same withdrawal.
- Withdraw less than the monthly return. If your monthly return exceeds your withdrawal, the corpus grows instead of shrinking — this is the goal of a sustainable withdrawal strategy.
- Start with the SWP rate. Divide annual withdrawal by corpus to find your withdrawal rate. Many planners target 4% per year (the 4% rule) as a sustainable long-run rate.
- Pair with FIRE planning. Use the FIRE Calculator to size the corpus you need, then verify its sustainability here.