SWP calculator
A systematic withdrawal plan turns a corpus into a monthly income. The question that matters is how long it lasts. This runs it month by month, so you can see the balance fall, or not.
Your plan
Withdrawals are taken at the end of each month, after that month's growth.
What is left, year by year
| Year | Withdrawn that year | Withdrawn so far | Balance at year end |
|---|
How this is worked out
Each month the balance grows by one twelfth of the yearly return, and then the withdrawal is taken out. That order matters: taking the money out first would understate how long the corpus lasts. The moment the balance cannot cover a full withdrawal, the plan has run out, and the month it happens is reported.
The withdrawal that lasts for ever is the one that never exceeds the growth — the corpus multiplied by the monthly return. Withdraw a rupee more than that and the balance falls, slowly at first and then quickly.
If you set the yearly increase, the withdrawal rises by that much every twelve months, which is what it takes to keep the income worth the same as prices rise. It shortens the plan considerably; that is the point of showing it.
What this is not
Returns are assumed steady. Real markets are not, and a bad first few years hurts a withdrawal plan far more than the same years later on — the same average return can run out or last, depending on the order it arrives in. Tax on the gains in each withdrawal is not applied.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Nothing here is investment advice.