Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Simulate monthly withdrawals, annual escalation and portfolio growth to see when a corpus may run out.
Simulate an SWP
Sequence-of-returns risk is not captured by a constant-return simulation.
Ending corpus
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Total withdrawn
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Measure
Result
Corpus exhaustion point
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Year-1 withdrawal rate
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How This Is Calculated
A Systematic Withdrawal Plan (SWP) withdraws a fixed amount at regular intervals from an invested corpus, while the remaining balance continues to grow at the expected rate of return. This calculator projects how long the corpus lasts given the withdrawal amount and expected return — if withdrawals exceed what the corpus can sustain at that return rate, the corpus depletes; if withdrawals are within the sustainable rate, the corpus can last indefinitely or even grow.
Frequently Asked Questions
What is the difference between SWP and simply redeeming units as needed?
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SWP automates a fixed periodic withdrawal, which helps with disciplined cash flow planning (useful for post-retirement income) and can be more tax-efficient for mutual funds since only the gain portion of each withdrawal is taxed, not the full amount, unlike a lump-sum redemption.
How is SWP withdrawal taxed?
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Each SWP withdrawal from a mutual fund is treated as a partial redemption of units — only the capital gain portion (proportionate to the withdrawal) is taxable, taxed as short-term or long-term capital gains depending on the holding period of the units redeemed, not the full withdrawal amount.
What withdrawal rate keeps an SWP corpus sustainable indefinitely?
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If the withdrawal rate is lower than the corpus's expected rate of return, the corpus can sustain withdrawals indefinitely (and may even grow). If the withdrawal rate exceeds the return rate, the corpus will eventually deplete — use this calculator to check whether your planned withdrawal is sustainable for your expected return.
Scope: Projects how long a lump-sum investment will last under a Systematic Withdrawal Plan (SWP), given a fixed or inflation-adjusted monthly withdrawal amount and an assumed rate of return.
Calculation logic
For each month, apply the assumed monthly return rate to the opening balance, then subtract that month's withdrawal amount to arrive at the closing balance, which becomes the next month's opening balance.
Where inflation-adjusted withdrawals are selected, increase the withdrawal amount annually by the entered inflation rate rather than keeping it fixed.
The projection continues month by month until either the balance reaches zero (corpus exhausted, with the month flagged) or the user-specified projection horizon ends, whichever comes first.
Inputs and assumptions
Return convention: the expected annual return is treated as an effective annual rate, so the monthly rate is (1 + r)1/12 − 1 and 12% a year compounds to exactly 12% over a year. Calculators that divide the annual rate by 12 give slightly higher results for the same input; the SIP calculator uses that convention.
Assumed rate of return is a planning input for the asset class selected, not a guaranteed or predicted return — actual market-linked SWP performance varies materially, especially with sequence-of-returns risk in early withdrawal years.
Withdrawal timing is assumed to be monthly and at month-end for the compounding convention used.
Exclusions and edge cases
Does not model sequence-of-returns risk (variable year-to-year returns) — this is a deterministic, constant-return projection, which understates the risk of corpus depletion compared to a real variable-return scenario.
Capital-gains tax on the redemption component of each withdrawal (for a mutual-fund SWP) is not netted out unless the user adjusts the return assumption to a post-tax figure.
Sources
No specific external regulatory source applies beyond general market-linked instrument mechanics.
Review status: reviewed and approved by CA Nikhil Gupta on 14 July 2026.
Guides that use this calculator
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.