Plan SWP withdrawals with yearly increases. See when the corpus runs out, the inflation-adjusted payments, and the starting withdrawal your selected plan can fund.
How much can I withdraw without the corpus shrinking?
With no yearly increase, only the growth. At 10% a year on ₹50,00,000 that is ₹39,870 a month withdrawn at month end. That flat-payment benchmark does not support increasing withdrawals forever. The starting limit shown here answers a different question: it includes your yearly increases and allows the capital to be spent over the horizon you choose.
Should I withdraw at the start or the end of the month?
The end, if you have the choice. Money you leave invested for one more month earns one more month of return. Over 20 years on a ₹50,00,000 corpus the difference is about ₹1,70,000. It is small next to the return assumption, but it is free.
Why does 12% a year not mean 1% a month?
Because 1% a month compounds to 12.68% a year, not 12%. Many SWP pages divide the annual rate by twelve, which quietly assumes a higher return and makes the corpus last longer than it will. This calculator uses the twelfth root instead, so 12% a year is really 12% a year.
Is an SWP taxed?
Each withdrawal is a redemption, so it triggers capital gains on the units sold. Only the gain part is taxed, not the whole withdrawal, and units held long enough qualify for the long-term rate. The order in which units are sold is first in, first out. Use the capital gains calculator for the actual figure.
Why does this calculator show an inflation-adjusted number?
Because a fixed cheque quietly gets smaller. ₹30,000 a month at 6% inflation buys about ₹9,400 of today’s goods after 20 years. Yearly increases happen only on anniversaries, while inflation is applied through each payment date. Equal increase and inflation rates preserve buying power at corresponding points each year, not between increases. The last payment of a year can therefore buy less than the opening payment.
What is sequence-of-returns risk?
Two portfolios can average the same return and end up in completely different places if one has its bad years first. When you are withdrawing, a fall early on sells more units at a low price and the corpus never recovers. A constant-return calculator cannot show this, which is why the sensitivity table matters more than the headline number.