SWP: systematic withdrawals
Take the same amount every month from an invested lumpsum and see how long it lasts, or what’s left.
After 25 years, $1.36M is still left
Returns more than cover $6,000 a month, so the balance grows. You could take up to $7,486 a month and still last 25 years.
Shown in future amounts. Turn on Today’s money to adjust for 6% inflation.
Corpus balance
The balance never runs out: returns cover every withdrawal for the 25 years shown.
Your ageShow the numbers as a table
| Age | Balance |
|---|---|
| 60 | $1,000,000 |
| 61 | $1,004,917 |
| 62 | $1,010,227 |
| 63 | $1,015,962 |
| 64 | $1,022,155 |
| 65 | $1,028,844 |
| 66 | $1,036,068 |
| 67 | $1,043,871 |
| 68 | $1,052,297 |
| 69 | $1,061,397 |
| 70 | $1,071,226 |
| 71 | $1,081,841 |
| 72 | $1,093,304 |
| 73 | $1,105,686 |
| 74 | $1,119,057 |
| 75 | $1,133,498 |
| 76 | $1,149,095 |
| 77 | $1,165,939 |
| 78 | $1,184,131 |
| 79 | $1,203,778 |
| 80 | $1,224,997 |
| 81 | $1,247,913 |
| 82 | $1,272,663 |
| 83 | $1,299,393 |
| 84 | $1,328,261 |
| 85 | $1,359,439 |
Year-by-year table25 years
| Year | Age | Yr · age | Withdrawn that year | Balance at year end |
|---|---|---|---|---|
| 1 | 60 | 1 · 60 | $72,000 | $1,004,917 |
| 2 | 61 | 2 · 61 | $72,000 | $1,010,227 |
| 3 | 62 | 3 · 62 | $72,000 | $1,015,962 |
| 4 | 63 | 4 · 63 | $72,000 | $1,022,155 |
| 5 | 64 | 5 · 64 | $72,000 | $1,028,844 |
| 6 | 65 | 6 · 65 | $72,000 | $1,036,068 |
| 7 | 66 | 7 · 66 | $72,000 | $1,043,871 |
| 8 | 67 | 8 · 67 | $72,000 | $1,052,297 |
| 9 | 68 | 9 · 68 | $72,000 | $1,061,397 |
| 10 | 69 | 10 · 69 | $72,000 | $1,071,226 |
| 11 | 70 | 11 · 70 | $72,000 | $1,081,841 |
| 12 | 71 | 12 · 71 | $72,000 | $1,093,304 |
| 13 | 72 | 13 · 72 | $72,000 | $1,105,686 |
| 14 | 73 | 14 · 73 | $72,000 | $1,119,057 |
| 15 | 74 | 15 · 74 | $72,000 | $1,133,498 |
| 16 | 75 | 16 · 75 | $72,000 | $1,149,095 |
| 17 | 76 | 17 · 76 | $72,000 | $1,165,939 |
| 18 | 77 | 18 · 77 | $72,000 | $1,184,131 |
| 19 | 78 | 19 · 78 | $72,000 | $1,203,778 |
| 20 | 79 | 20 · 79 | $72,000 | $1,224,997 |
| 21 | 80 | 21 · 80 | $72,000 | $1,247,913 |
| 22 | 81 | 22 · 81 | $72,000 | $1,272,663 |
| 23 | 82 | 23 · 82 | $72,000 | $1,299,393 |
| 24 | 83 | 24 · 83 | $72,000 | $1,328,261 |
| 25 | 84 | 25 · 84 | $72,000 | $1,359,439 |
How this is calculated
Each month we take out $6,000 first, then grow what’s left at the monthly version of a 8% yearly return: 0.643% a month.
W = C × i ÷ ((1 − (1 + i)−n) × (1 + i))
The largest withdrawal that lasts exactly the planned years is an annuity paid at the start of each month, with n = 300 months.
The withdrawal stays flat, so inflation erodes what it buys. To raise it with prices, use SWP vs inflation.
Today’s money divides an amount in year n by (1 + 6%) to the power n. Returns are assumed steady; a bad few years early on can make the money run out sooner. Tax isn’t modelled.
Frequently asked questions
What is an SWP?
A systematic withdrawal plan takes a fixed amount out of an investment every month while the rest stays invested and keeps earning.
How long will my money last with an SWP?
It depends on the corpus, the withdrawal, the return, and whether withdrawals rise with inflation. The calculator runs month by month and shows when the balance would run out, if it does.
What is a safe withdrawal rate?
A common starting point is 3–4% of the corpus in the first year, raised with inflation after that. Use a lower rate if your retirement is long or returns are uncertain. The safe withdrawal rate calculator works out the figure for your inputs.
How are SWP withdrawals taxed?
Usually only the gain inside each withdrawal is taxed, not the whole amount. The rules differ by country; for Indian equity funds, the Tax on SWP calculator works it out.