How SWP is calculated
Each month the remaining balance earns the monthly return, then your withdrawal is paid out. Without a yearly increase, the balance after n months is:
Worked example
₹50 lakh earning 8% a year, paying ₹30,000 a month for 20 years, still leaves about ₹69,63,401. The highest monthly withdrawal that lasts exactly 20 years is about ₹41,822. Withdrawing ₹33,333 a month or less never touches the original ₹50 lakh.
Plan for rising costs
A fixed withdrawal buys less every year. Tick “Raise the withdrawal every year” to increase it, say by 5% a year, and see whether your money still lasts. This is the most common reason retirement plans fall short.
Frequently asked questions
How much can I withdraw every month without running out?
The calculator shows the highest starting withdrawal that lasts exactly your chosen period. A lower amount leaves a balance at the end.
What is a safe withdrawal rate?
A withdrawal at or below what your money earns each month keeps the starting amount intact. Anything above that slowly uses up your capital.
Does SWP include inflation?
Tick “Raise the withdrawal every year” to increase payouts in line with prices, and tick “Show the result in today’s money” to see the balance at today’s prices.
What happens after the withdrawal period?
The table continues for 25 more years. Choose “Keep withdrawing” or “Stop withdrawals” to see either path.
Is SWP income taxable?
Each withdrawal can include capital gains, which are taxed under your country’s rules. Check the current rules or ask a tax adviser.