SWP Calculator with Inflation
How long will your corpus actually last if your withdrawals rise with the cost of living? Flat-withdrawal SWP calculators flatter your plan. This one tells the truth.
Verdict
Your corpus lasts 16 yr 6 mo
- Starting corpus
- $400.0K
- First-year withdrawal
- $2,400/mo
- Total withdrawn
- $602.5K
- Final balance
- $0.0
A flat-withdrawal calculator would show this plan lasting 23 yr 4 mo. Inflation is the difference.
Corpus over time
Year-by-year table
| Year | Balance | Monthly withdrawal |
|---|---|---|
| 0 | $400,000 | $2,400 |
| 1 | $390,546 | $2,400 |
| 2 | $379,735 | $2,472 |
| 3 | $367,474 | $2,546 |
| 4 | $353,662 | $2,623 |
| 5 | $338,195 | $2,701 |
| 6 | $320,959 | $2,782 |
| 7 | $301,837 | $2,866 |
| 8 | $280,704 | $2,952 |
| 9 | $257,427 | $3,040 |
| 10 | $231,868 | $3,131 |
| 11 | $203,877 | $3,225 |
| 12 | $173,300 | $3,322 |
| 13 | $139,970 | $3,422 |
| 14 | $103,714 | $3,524 |
| 15 | $64,348 | $3,630 |
| 16 | $21,676 | $3,739 |
Why flat SWP numbers mislead
A Systematic Withdrawal Plan (SWP) pays you a fixed amount from your investments every month. The catch: a fixed amount buys less every year. At 6% inflation, prices double roughly every 12 years, so a withdrawal that feels comfortable at 60 feels like half an income at 72. When you increase the withdrawal each year to keep pace, the corpus depletes far faster than the flat calculation suggests: the same 1 crore that lasts 60+ years flat can run out in about 21 years inflation-adjusted at an 8% return.
Use the sliders to find the withdrawal level where your plan survives your realistic horizon, which means 30+ years if you retire around 60. Assumptions: returns compound monthly from an effective annual rate, withdrawals step up once a year, and taxes are not modelled, so use a post-tax return. India's long-run consumer inflation has averaged close to 6%, which is why that is the default here.
FAQ
Why does inflation matter in an SWP calculation?
A 60,000 rupee withdrawal today needs to become roughly 1,07,000 rupees in 10 years at 6% inflation to buy the same things. Most SWP calculators keep the withdrawal flat, which makes a corpus look like it lasts decades longer than it will. This calculator increases the withdrawal every year so the answer reflects reality.
What return assumption should I use?
Use a post-tax, realistic figure for where the corpus is parked: roughly 6.5 to 7% for debt funds or FDs, 8 to 10% for a balanced mix, 10 to 12% for equity-heavy portfolios with more volatility risk. This calculator treats the return as an effective annual rate compounded monthly.
What is a safe withdrawal rate?
Global research suggests around 4% of the corpus per year, inflation-adjusted, survives most 30-year retirements. Indian advisers often suggest 3 to 3.5% because inflation here runs higher. On 1 crore that is roughly 25,000 to 29,000 rupees per month in the first year.
Does this account for taxes on withdrawals?
No. Mutual fund SWP withdrawals attract capital gains tax depending on the fund type and holding period. Treat the expected return you enter as post-tax to approximate this, and confirm specifics with a tax adviser.
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