SWP Calculator

See how withdrawals use both returns and your original capital

A systematic withdrawal plan takes money out of an investment at regular intervals. The withdrawal amount is not the same as investment income: payments may also consume the starting capital. This calculator tracks the amount requested, the amount actually available, any unpaid portion and the remaining portfolio. Its default return is an illustration, not a fund forecast.

Worked example

With Rs 1,20,000, a Rs 10,000 monthly withdrawal, no increases and zero return, 12 payments are fully funded. The balance then reaches zero and month 13 is the first unpaid withdrawal in a two-year plan. If you begin with only Rs 5,000, the first Rs 10,000 request receives Rs 5,000 and records the remainder as unmet.

Formula and calculation method

For beginning-month timing, a withdrawal is made before growth; for end-month timing it is made after growth. Each actual payment is capped at available assets and the balance cannot fall below zero. The initial monthly request increases after each completed block of 12 months. The first shortfall is the first month whose request is not fully paid, ignoring sub-paisa numerical noise. Calculations are unrounded internally; displays round to rupees and the CSV retains two decimal places.

Interpretation and limitations

The withdrawal-budget view discounts each payment and an optional terminal balance to the start. The ending-balance target is stated in final-year money, not current purchasing power. Return-order stress uses one selected annual stress return and the base return in every other year, then reverses the sequence. Both sequences have the same no-withdrawal compound return, but may fund different amounts when withdrawals occur. No tax, exit load, NAV-unit rounding or business-day adjustment is automatically applied.

Reference: Vanguard: retirement risks, withdrawals and market volatility.

Common questions

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