Smooth-return assumption
Real markets do not deliver equal monthly returns.
Investments • End-of-month withdrawals
SWP Calculator
Estimate regular monthly withdrawals and remaining corpus using a transparent end-of-month convention. The smooth-return model cannot show real market volatility or sequence risk.
Enter withdrawal assumptions
How the monthly loop works
- Convert annual assumed return to a monthly rate.
- Apply one month of smooth growth.
- Withdraw the requested amount at month-end.
- Repeat until the period ends or corpus is exhausted.
If less than the requested amount remains, the tool withdraws the remaining balance and stops.
Formula and timing
Balancem = Balancem−1 × (1+r) − Withdrawal
r is annual return divided by 12 and 100. The implementation uses an explicit monthly loop, which matches the displayed end-of-month convention. Display values round to whole rupees.
Worked example
An initial ₹20,00,000 corpus, ₹15,000 monthly withdrawal, illustrative 8% annual return and 10 years gives:
| Total withdrawn | ₹18,00,000 |
|---|---|
| Estimated remaining corpus | ₹16,95,090 |
| Estimated growth component | ₹14,95,090 |
The smooth result can overstate stability. Actual returns may be poor early in retirement, when withdrawals can sell more units at lower prices.
How to interpret results
Total withdrawn is cumulative cash removed. Remaining corpus is the smooth projection after withdrawals. Growth component equals withdrawals plus remaining value minus starting corpus; it is not guaranteed profit.
Sequence-of-returns risk
Two portfolios can have the same average return but different outcomes if losses arrive at different times. Early losses combined with withdrawals may reduce recovery potential.
Practical tips
- Test lower-return and higher-withdrawal scenarios.
- Keep near-term spending in lower-volatility assets where appropriate.
- Review tax and exit-load effects separately.
- Do not treat the projection as guaranteed income.
- Revisit withdrawal needs and asset allocation periodically.
Common mistakes
Ignoring inflation
A fixed withdrawal may lose purchasing power.
Forgetting tax
Redemptions can have tax consequences.
Excess withdrawal
A high withdrawal can exhaust corpus quickly.
Related resources
Frequently asked questions
What is an SWP?
A method of periodic investment redemption.
When is money withdrawn here?
At the end of each month after assumed growth.
Are returns guaranteed?
No.
What if corpus runs out?
The tool stops and warns about the month.
Are tax and exit load included?
No.
What is sequence risk?
The order of gains and losses can change withdrawal sustainability.
Is SWP guaranteed retirement income?
No.
Can withdrawal be changed?
Actual platforms may allow changes; this model keeps it constant.
Educational disclaimer
This is a simplified educational projection, not retirement or investment advice. Market returns and corpus sustainability are not guaranteed.