How it works
A systematic withdrawal plan (SWP) takes a fixed amount out of an investment every month. What remains stays invested and keeps earning.
Each month, the balance grows by the monthly return, and then the withdrawal is taken at the end of the month.
If your withdrawal is bigger than the return, the balance shrinks. If the money runs out before the period ends, the result tells you in which month.
You can raise the withdrawal each year to keep up with prices. That makes the money run out sooner, so try it to see the effect.
The formula
Each month: balance = balance × (1 + monthly return) − withdrawal
The monthly return is the yearly return ÷ 12. The withdrawal for each year is the previous year’s withdrawal × (1 + yearly raise).
A worked example
Starting with ₹50,00,000 and withdrawing ₹30,000 a month at an expected 8% a year for 20 years leaves about ₹69.6 lakh at the end. Withdrawing ₹50,000 a month instead lets the money run out in under 14 years.
Frequently asked questions
What is a safe withdrawal rate?
A common rule of thumb is about 4% of the starting amount a year, but it depends on returns, how long you need the money for and how much you can adjust. Treat any rule as a starting point.
Are returns steady?
No. This calculator uses one steady return. Real markets go up and down, and a bad run early on does more harm when you are also withdrawing.
Is the withdrawal taxed?
For mutual funds, the gains part of each withdrawal can be taxed, and rules vary by fund type. This calculator ignores tax.