SWP Projection Calculator
Estimate how long your corpus can support monthly withdrawals with annual inflation adjustments.
What is a Systematic Withdrawal Plan (SWP)?
A systematic withdrawal plan is a strategy where you withdraw a fixed amount from your investment portfolio at regular intervals, usually monthly. It is commonly used in retirement planning, early financial independence plans, and income-focused mutual fund strategies.
The biggest challenge with an SWP is balancing income today with portfolio longevity. If withdrawals are too high, your corpus may deplete early. If withdrawals are too low, you may underuse your savings and sacrifice lifestyle unnecessarily.
How this SWP calculator works
Assumptions used in the model
- Returns are compounded monthly based on your annual return estimate.
- Withdrawal happens monthly.
- Your monthly withdrawal increases once per year by the inflation rate you enter.
- The calculator projects up to your selected horizon or until your corpus is exhausted.
What you get from the output
- Final corpus value at the end of the horizon.
- Total amount withdrawn over the full period.
- Whether your corpus lasts the entire period or depletes earlier.
- An estimated sustainable starting monthly withdrawal for the same assumptions.
- A year-by-year projection table.
How to use the calculator effectively
- Enter your current retirement corpus or investable amount.
- Use a realistic return estimate after fees and taxes.
- Set inflation to reflect your expected annual expense growth.
- Choose your retirement or withdrawal horizon (e.g., 25 or 30 years).
- Input your desired starting monthly withdrawal and compare it with the sustainable estimate.
Practical SWP planning tips
1) Be conservative with return assumptions
A portfolio may return 10% in some years and much less in others. For long-term withdrawal planning, conservative estimates reduce the risk of unpleasant surprises.
2) Inflation matters more than most people think
Even 4% annual inflation can significantly increase withdrawals over 20+ years. If your spending rises but your portfolio return does not keep pace, depletion risk rises quickly.
3) Review your SWP annually
Revisit your numbers every year. If markets underperform, reduce withdrawals temporarily. If returns are strong, you may safely increase spending.
4) Keep a short-term cash buffer
Holding 12–24 months of expenses in liquid assets can help avoid selling long-term investments during market downturns.
Limitations of any SWP calculator
This tool is deterministic and uses fixed assumptions. Real markets are volatile, taxes vary by investor, and withdrawal timing can affect outcomes. Use this as a planning guide, not as a guarantee.
Bottom line
A strong SWP plan combines math with discipline. Start with a realistic withdrawal, adjust for inflation, monitor portfolio health yearly, and stay flexible. Done well, a systematic withdrawal plan can provide stable long-term income while protecting your wealth.