Finance & InvestmentEntry № 01.30Documented Formula

Systematic Withdrawal Plan (SWP) Calculator

Simulates monthly systematic cash withdrawals from mutual fund investments while tracking remaining capital appreciation and longevity.

Popular Searches:How much can I withdraw monthly from 50 lakhs corpus?Is SWP better than FD for monthly income?Corpus depletion calculation with SWP

Systematic Withdrawal Plan (SWP) Pension Simulator

Initial Investment Corpus$5,000,000.00

Desired Monthly Withdrawal$35,000.00

Expected Annual Return (%)

Tenure (Years)

Total Money Withdrawn

$6,300,000.00

Final Remaining Corpus: $5,061,051.45

Withdrawal Rate8.40% / yr

Corpus LongevitySustained for full 15 Years

Mathematical Proof & FormulaStandard Mathematical Notation

How This Calculation Formula is Formulated

Models recurring monthly withdrawals (W) from an invested capital balance (B) that continues to generate compounding periodic yields, tracking remaining corpus sustainability.

Standard Algebraic Representation

Bₜ = (Bₜ₋₁ − W) · (1 + r/12)

Documented algebraic formula with transparent derivation and reference notes.

Variable Definitions & Measurement Units

B₀

Initial Investment Corpus

Starting capital pool.

Monthly Withdrawal

Fixed monthly cash payout.

Annual Expected Return

Portfolio compound yield.

Duration

Withdrawal timeline.

Step-by-Step Calculation Example

₹50 Lakh Corpus Withdrawing ₹35,000/mo over 15 Years

A retiree invests ₹50,00,000 in a conservative hybrid fund earning 8.5% annual return, withdrawing ₹35,000 each month.

Total Cash Withdrawn

₹35,000 × 180 months = ₹63,00,000

Total pension income collected

Compounding on Remaining Principal

Unwithdrawn balance compounds monthly at (8.5%/12)

Capital growth

Ending Balance

Corpus survives full 15 years with ₹46,80,000 remaining balance

Capital preservation

Conclusion: The investor extracts ₹63,00,000 in cumulative monthly cash flow while preserving ₹46,80,000 in remaining assets.

In-Depth Editorial Analysis

SWP vs Bank FD for Monthly Pension

In a bank Fixed Deposit, monthly interest payouts are 100% taxable at your marginal slab rate (up to 30%+), and the principal never grows to offset inflation.

In an equity-oriented SWP, each withdrawal consists partly of original capital and partly of capital gains. Only the capital gains portion is taxable at favorable Long-Term Capital Gains (LTCG) rates, making SWP dramatically more tax-efficient.

Frequently Asked Questions

Frequently Asked Questions About Systematic Withdrawal Plan (SWP) Calculator

What is a safe SWP withdrawal rate?

A safe withdrawal rate is typically 4% to 6% of the initial corpus per year (e.g. ₹33,000 to ₹50,000 monthly per ₹1 Crore corpus) to ensure the fund never runs out.

Can SWP corpus run out of money?

Yes, if the withdrawal rate exceeds the portfolio's annual rate of return over an extended period, capital will steadily deplete to zero.

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Deterministic Precision & 100% Client-Side Privacy

All calculations execute in your local browser using IEEE 754 double-precision floating-point arithmetic. Your figures and financial metrics remain private and are never uploaded or saved to any cloud servers.