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Work out how long a corpus will last if you withdraw a fixed amount every month, and find the largest withdrawal it can sustain without ever running dry.
Step 1
Enter your corpus
The total amount available to draw an income from, after setting aside any emergency fund.
Step 2
Set the monthly withdrawal
The amount you need each month. The sustainable figure in the results shows what the corpus can support indefinitely.
Step 3
Check how long it lasts
If the corpus depletes before your horizon, lower the withdrawal or extend the return assumption.
How long the corpus lasts
Beyond 25 years
The corpus survives the full period, with a balance still invested at the end.
Total withdrawn
₹10,50,000
300 monthly payments of ₹3,500.
Sustainable withdrawal
₹3,311/mo
Withdrawing this much instead would keep the corpus intact forever.
Each month the withdrawal comes out first, then the balance that remains earns a month of return. Repeating that gives both the depletion date and the balance at any point.
Bₖ = (Bₖ₋₁ − W) × (1 + i) and W* = B₀ × i ÷ (1 + i)Balance after month k
What remains invested once the withdrawal and growth are applied.
Starting corpus
The amount you begin with.
Monthly withdrawal
The fixed amount taken out at the start of each month.
Monthly return rate
The expected annual return divided by 12 and by 100. An 8% annual return gives i ≈ 0.006667.
Sustainable withdrawal
The steady state of the first equation, where the balance ends each month exactly where it started.
Withdraw exactly W* and the corpus stays level forever, because the growth on what remains replaces what you took. Withdraw more and the balance falls a little faster each month, so depletion accelerates. Withdraw less and the corpus keeps growing even while paying you an income.
A systematic withdrawal plan is the opposite cash-flow of a SIP. Sequence of returns matters more because you are taking money out. The rate you type is still an assumption, not a pension.
Answers about the swp calculator.
Continue exploring adjacent tools in this topic.
Guides that explain the ideas behind these numbers.
These figures are estimates based on the values and assumptions you enter. Market returns are not guaranteed. Tax, brokerage and other rules can change. Finaura is an educational tool, not personalised financial, tax, investment or legal advice. Confirm important decisions with the relevant institution or a qualified professional.