SWP Calculator — Systematic Withdrawal Plan Longevity

A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP. Instead of investing every month, you withdraw a fixed amount — typically to fund retirement income or a sabbatical. The SWP calculator shows whether your corpus can outlast your withdrawals at a given expected return.

SWP Calculator

See how long your retirement corpus will last when you withdraw a fixed amount every month.

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$
Return rate8.00%
Duration20

SWP outcome

Final Balance–
Total Withdrawn–
Months Until Depletion–
Status–

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Why SWPs Matter for Retirement

Most people focus on accumulation — building the corpus — and ignore the harder problem: the decumulation phase. Withdrawing too aggressively can deplete a corpus in 10 years. Withdrawing too conservatively means dying with money you could have enjoyed. SWPs sit at the heart of this trade-off.

The classic 4% safe withdrawal rule (originally from the Trinity Study) suggests retirees can withdraw 4% of their initial corpus annually, inflation-adjusted, with high confidence of the corpus lasting 30 years. Use this calculator to stress-test your own number.

The SWP Formula

Balt+1 = Balt × (1 + r/12) − W

Each month, the running balance grows by the monthly return rate, then a fixed withdrawal W is subtracted. The calculator iterates this month-by-month until either the period ends or the balance hits zero.

Worked Example

Example: A $1,000,000 corpus, returning 8% annually, with $5,000/month withdrawals → after 20 years, balance ≈ $2.27M. Increase withdrawals to $9,000/month → corpus depletes in roughly year 19. Small changes in withdrawal rate create huge swings in longevity.

Sustainable Withdrawal Strategies

  • 4% rule — withdraw 4% of initial corpus per year, inflation-adjusted. Robust for 30-year retirements.
  • Bucket strategy — split corpus into short-term cash, medium-term bonds, long-term equity. Withdraw from cash bucket; refill from others.
  • Guardrails — increase withdrawals in good years, cut them in bad years. Far more efficient than fixed withdrawals.

Frequently Asked Questions

How does SWP differ from a fixed annuity?▾
An annuity locks you into a guaranteed payout but typically yields lower returns and gives up control of the corpus. SWPs let you keep market exposure and full flexibility — but you bear the sequence-of-returns risk.
What’s a safe withdrawal rate?▾
Historically, ~4% annually for a 30-year retirement has worked in most rolling periods. For longer retirements (40+ years) or lower expected returns, 3.0–3.5% is safer.
Can I increase withdrawals over time?▾
Yes — and you should, to keep up with inflation. Most retirees increase SWPs by 3–5% per year. Re-run this calculator each year with updated assumptions.
What return should I use?▾
Be conservative. For a balanced retirement portfolio (60/40 equity/debt), 7–8% is reasonable. For pure debt portfolios, 5–6%.

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