How to use SWP Calculator
A systematic withdrawal plan takes money out of an investment on a regular schedule. This model grows the remaining balance at a hypothetical constant monthly rate, then makes an end-of-month withdrawal. It stops a withdrawal from exceeding the available balance.
The count of full withdrawals is useful when the balance runs out early. A partial last withdrawal is included in the total withdrawn but is not counted as a full withdrawal. Real markets can produce a different depletion date because the sequence of returns matters.
The formula
A worked example
Starting investment (₹): 1000000 · Monthly withdrawal (₹): 10000 · Annual rate (%): 6 · Duration (months): 120
Estimated ending balance: ₹1,80,603.27
Growth occurs before each end-of-month withdrawal. Returns are hypothetical and exclude taxes and fees.
Questions about this calculation
Why can the balance run out despite a positive return?
Withdrawals may exceed investment growth. The principal then shrinks and produces less future growth.
Does the model handle a final partial withdrawal?
Yes. It withdraws the available balance and reports how many full payments were possible.
Formula checks: 2026-10-08. Assumptions & corrections.