Using the SWP Calculator
Enter the balance available when withdrawals begin, the amount you want each month and the number of years to model. The yearly table separates money withdrawn from investment gains or losses, so you can see whether the balance is shrinking. Try a lower return or a larger withdrawal to compare a more demanding scenario. You can also enter a negative return. The calculator uses an effective annual return and converts it into a matching monthly rate; it applies growth first and makes the withdrawal at the end of each month. If the account cannot cover the requested payment, it pays the remaining balance and stops. This prevents a projection from showing withdrawals that the investment could not fund.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Initial investment
- 1000000
- Monthly withdrawal
- 10000
- Expected annual return (%)
- 8
- Withdrawal period (years)
- 10
Example result
- Total withdrawn
- 1,200,000
- Remaining balance
- 357,682.27
- Investment gain / loss
- 557,682.27
- Withdrawal outlook
- Balance remains after the selected period.
Method and assumptions
The annual return is treated as an effective annual rate: monthly rate = (1 + annual rate / 100)^(1/12) − 1. Each month earns that rate before an end-of-month withdrawal. Closing balance = max(0, opening balance × (1 + monthly rate) − requested withdrawal). The final payment is capped at the available balance, and withdrawals stop when funds run out. Annual rows aggregate actual payments and gains without rounding intermediate balances. All amounts use the same currency. Returns are constant assumptions; taxes, exit loads, other fees, inflation and changes in NAV are excluded.
Reference: amfiindia.com — method and further reading
Use consistent assumptions over time
A retirement projection depends on when contributions or withdrawals happen, the rate used and the number of periods. Keep those assumptions visible when comparing scenarios. An amount expressed in future currency is not automatically equivalent to the same amount of purchasing power today. Tax treatment and account rules should be checked separately wherever the model does not include them.
Common question
Does a positive assumed return mean my SWP will last indefinitely?
No. The requested withdrawal can exceed the growth on the remaining balance, gradually using up capital. This model only covers the selected period and assumes the same return every month. Actual return sequences, taxes, exit loads and inflation can change how long the money lasts; a remaining balance here is a scenario result rather than an assurance of future income.
Guide updated .