SWP Calculator (Systematic Withdrawal Plan)

How much of a corpus is left after a monthly withdrawal for a set number of years at an assumed return — fixed, or rising with inflation each year — or, if the withdrawals are too large, when the money runs out.

Last updated 24 Sep 2026

Systematic withdrawal plan

CurrencyCorpus + withdrawal → what is left

Starting corpus ($)

Monthly withdrawal ($)

Expected return (% per year)An assumption, not a promise. Funds used for withdrawals are often lower-risk, with lower expected returns.

Years of withdrawals

When each withdrawal is takenWithdrawing at the start leaves slightly less invested each month.

Do the withdrawals rise with inflation?Rising withdrawals keep what you can buy steady, which is the realistic case for living costs. The raise comes every 12 withdrawals.

Inflation (% a year)Defaults to your currency’s central-bank target (India 4%, US/UK/Euro/Canada 2%). Actual inflation often runs higher — try 5–6% for a cautious plan. For AED, SAR, PKR, BDT and MYR there is no official target: enter your own estimate.

$10,73,197Example

$50,00,000 invested, withdrawing $40,000 at the end of each month for 20 years at 8% a year

What is left, and when it runs out

B_n = C × (1 + i)ⁿ − W′ × [(1 + i)ⁿ − 1] ÷ i; runs out at n* = ln[W′ ÷ (W′ − C × i)] ÷ ln(1 + i). Rising withdrawals: B_n = C × (1 + i)ⁿ − W′ × K, K = s × (q^Y − g^Y) ÷ (q − g) × (1 + i)^r + g^Y × [(1 + i)^r − 1] ÷ i

C: the starting corpus
W′: the monthly withdrawal W, or W × (1 + i) when it is taken at the start of the month; with the rise on, W is the first year’s withdrawal
i: the monthly rate: annual return ÷ 12 ÷ 100
n: the number of months; with fixed withdrawals, if W′ is no more than C × i, the corpus never runs out
g: 1 + inflation as a decimal; year k’s withdrawal is W × g to the power k
q, s: q = (1 + i)¹², one year’s growth; s = (q − 1) ÷ i, twelve withdrawals of 1 at the year end. When q equals g, (q^Y − g^Y) ÷ (q − g) becomes Y × q^{Y − 1}
Y, r: the whole years in the period and the months left over: n = 12Y + r

Worked example

$50,00,000 invested, withdrawing $40,000 at the end of each month for 20 years at 8% a year
i = 8 ÷ 12 ÷ 100 = 0.006667; n = 240; (1 + i)²⁴⁰ = 4.9268
B = 50,00,000 × 4.9268 − 40,000 × (4.9268 − 1) ÷ 0.006667 = $10,73,197
The month's return on the corpus is 50,00,000 × 0.006667 = $33,333, so a $40,000 withdrawal eats slowly into capital
About $41,822 a month would use the corpus up exactly in 20 years
If the $40,000 rises 4% a year instead, K = 792.08 and B = 50,00,000 × 4.9268 − 40,000 × 792.08 is below zero: the money runs out in year 14

50,00,000 at 8%, withdrawn at the end of each month, over 20 years

A withdrawal only a little above the monthly return lasts a long time; one well above it runs down quickly.
Monthly withdrawal	Value left after 20 years	Runs out after
$30,000	$69,63,401	Lasts the 20 years
$35,000	$40,18,299	Lasts the 20 years
$40,000	$10,73,197	Lasts the 20 years
$45,000	$0	16.9 years
$50,000	$0	13.8 years

How an SWP runs down, and the convention used

In a systematic withdrawal plan the fund redeems units worth a fixed amount on a set date each month and pays it to you, while the rest stays invested. Whether the corpus lasts depends on one comparison: the withdrawal against the monthly return on what is left. Below it, the corpus grows; a little above it, capital runs down slowly at first and faster later, because each withdrawal leaves less to earn a return. In the example the month’s return is about $33,333, so a $40,000 withdrawal leaves about $10,73,197 after 20 years, while $45,000 runs out in about 16.9 years.

The default convention is a withdrawal at the end of each month, the first one a month after investing, which is how an SWP usually starts. You can switch to the start of each month; on the example that leaves $9,16,125 rather than $10,73,197. The monthly rate is the annual return ÷ 12, the same convention as the SIP calculator. Other SWP calculators may use a different one, and their figures will differ slightly.

Why withdrawals that rise with inflation are the realistic case. A fixed withdrawal looks safe in the headline and quietly shrinks. Prices rise, so each year the same amount buys less: at 4% inflation, the $40,000 taken in year 20 buys only what $18,986 buys today. To keep living the same way, most people have to take more each year, and the option above raises the withdrawal by inflation once a year to do that.

That changes the answer a great deal. On the example — $50,00,000 at 8% — a flat $40,000 a month lasts the full 20 years and leaves $10,73,197. Raise it by 4% a year and the money runs out in year 14: 167 full withdrawals, the last of them about $66,603 a month, and $87,39,078 paid out in all. The starting withdrawal that, rising by 4% a year, lasts exactly 20 years is about $31,100, not $41,822. Plan with the rising figure. A corpus that “lasts 20 years” at a flat withdrawal can leave you short years earlier.

The chart follows the value left at the end of each year, month by month underneath, so it works for both options and shows the year the money runs out. It also draws the total withdrawn so far and the value left in today’s money. The inflation input changes nothing else when the rise is off, apart from the today’s-money figures.

Real funds do not return a steady rate. A fall early in the withdrawal years hurts more than the same fall later, because units are being sold at low prices — the sequence-of-returns risk that also sits behind the FIRE calculator. Each redemption can create a capital gain that is taxable, and an exit load may apply to early redemptions. To size the corpus you need in the first place use the retirement corpus calculator. This is arithmetic on the figures you enter, not financial advice.

Frequently asked questions

How is SWP calculated?

The corpus grows at the monthly rate and the withdrawal is taken off each month: B = C(1 + i)ⁿ − W[(1 + i)ⁿ − 1] ÷ i for end-of-month withdrawals. $50,00,000 at 8% with $40,000 a month leaves about $10,73,197 after 20 years.

How long will my money last?

If the withdrawal is larger than the monthly return on the corpus, it runs out after ln[W ÷ (W − C × i)] ÷ ln(1 + i) months. If it is no larger, in this steady-return model it never runs out.

Is SWP income taxable?

Each withdrawal is a redemption of units, and the gain part of it can be taxable as a capital gain; the part that returns your own principal is not a gain. Rules differ by fund type and holding period and change over time, so check the current position.

Is the value left guaranteed?

No. It assumes the same return every month. Market-linked funds rise and fall, and a fall early in the withdrawal period can shorten how long the money lasts.

Should my withdrawals rise with inflation?

If they pay for living costs, yes, because a fixed amount buys less every year. It makes a big difference: $50,00,000 at 8% with $40,000 a month lasts 20 years when fixed, but runs out in year 14 when the withdrawal rises 4% a year.

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References

Association of Mutual Funds in India (AMFI), Mutual Funds Sahi Hai investor education. What is a Systematic Withdrawal Plan (SWP)? https://www.mutualfundssahihai.com/en/what-is-systematic-withdrawal-plan-swp
Securities and Exchange Board of India (SEBI) / Association of Mutual Funds in India (AMFI). Mandatory risk statement for mutual fund communications: “Mutual fund investments are subject to market risks, read all scheme related documents carefully.”
Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. Present values, annuities and growing annuities.
Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.