Systematic withdrawal plan (SWP): how long will the money last?

A systematic withdrawal plan (SWP) pays you a fixed amount every month from money you have already invested, usually in a mutual fund. The key question is how long the money lasts. The answer depends on three numbers: how much you start with, how much you take each month, and what the rest earns.

How the SWP calculator works

The SWP calculator takes the withdrawal at the start of each month, then lets the remaining balance earn one month of return (yearly rate ÷ 12). If you set a yearly raise, the new amount starts at the beginning of each year.

Worked example: ₹20 lakh, ₹15,000 a month, 8%

The raise matters because prices rise. Without it, ₹15,000 buys less every year. With it, you protect your spending but use up the money much faster. The calculator lets you drag the withdrawal slider until the plan lasts as long as you need.

The “never runs out” amount

Monthly earnings = balance × yearly return ÷ 12. On ₹20 lakh at 8% that is about ₹13,333. A flat withdrawal at or below this level leaves the starting amount untouched, as long as the return holds. Real funds do not earn a steady 8%, so many people keep a margin below this figure.

How to use the SWP calculator

1. Enter the amount invested and the monthly withdrawal.
2. Enter a cautious expected return and any yearly raise.
3. Read how long it lasts, what is left, and the year-by-year table.

Things the result does not show

• Bad years early on. A fall in the first years, while you keep withdrawing, can shorten the plan more than the average return suggests.
• Tax. Usually only the gain part of each withdrawal is taxed, under the rules for that fund type. Check the current rules.
• Guaranteed alternatives. The post office Senior Citizens Savings Scheme and Monthly Income Scheme pay fixed interest. See post office schemes.

To find how big the starting amount needs to be, use the retirement calculator and read how to calculate your retirement corpus.