Plan withdrawals and see the remaining corpus over time with a Systematic Withdrawal Plan.
A Systematic Withdrawal Plan (SWP) is a withdrawal strategy where you take a fixed amount periodically from your investment corpus. Unlike lump-sum withdrawals, SWP allows regular withdrawals while the remaining corpus continues to compound.
SWP is the opposite of SIP (Systematic Investment Plan). While SIP is about investing regularly, SWP focuses on withdrawing regularly—often used by retirees who need steady income.
This SWP Calculator estimates the sustainability of withdrawals from your corpus based on four inputs:
Using these inputs, the calculator shows:
All calculations run instantly and locally in your browser.
The calculator uses the following logic to compute SWP returns:
Corpus (Month n) = [Corpus (Month n-1) × (1 + CAGR/12)] - Monthly Withdrawal
The calculation happens monthly: your remaining corpus grows by a monthly compounding rate derived from the annual CAGR, and then the withdrawal amount is deducted. This repeats for each month of the withdrawal period.
If you set an expected inflation rate, your monthly withdrawal amount increases annually to maintain purchasing power. For example, if inflation is set to 5% annually, your Year 2 withdrawal will be 5% higher than Year 1, your Year 3 withdrawal 5% higher than Year 2, and so on.
Key insight: If your expected returns exceed the withdrawal rate, your corpus may grow or stabilize. If withdrawals exceed returns, the corpus depletes gradually.
An SWP Calculator is useful if you want to:
It gives you clarity on whether your current withdrawal plan is sustainable or needs adjustment.
To keep calculations transparent and simple, this SWP calculator assumes:
Corpus Over Time Chart: This line chart shows how your investment corpus changes month-by-month as you make withdrawals. It visualizes whether your corpus grows, stabilizes, or depletes over the withdrawal period. Declining line indicates corpus depletion.
Withdrawn vs Remaining Breakdown: The ring chart separates the total amount withdrawn from the remaining corpus, helping you see the composition of your wealth at the end of the period.
These visuals help you understand the long-term sustainability of your withdrawal plan and whether adjustments are needed.
| Feature | SIP (Investing) | SWP (Withdrawing) |
|---|---|---|
| Purpose | Regular investment building | Regular income generation |
| Frequency | Monthly/regular deposits | Monthly/regular withdrawals |
| Ideal Phase | Accumulation (earning years) | Distribution (retirement) |
| Corpus Direction | Growing | Depleting or stable |
| Tax Treatment | Capital gains on appreciation | Capital gains on withdrawal |
Many investors use both: SIP during earning years and SWP during retirement for sustainable income.
The 4% Rule is a popular retirement planning guideline:
Use this calculator to test the 4% rule with your specific numbers and expected returns.
This calculator is ideal for:
SWP is especially valuable for high net-worth individuals and retirees who want disciplined, tax-efficient withdrawal strategies.
This calculator is for educational and planning purposes only and does not constitute financial advice. Results are illustrative and not guaranteed. Taxes, fees, charges, and market risks are not included in the calculations. Consult a qualified financial advisor before making withdrawal decisions.