About the SIP to SWP Calculator
What is the SIP to SWP Calculator?
A complete retirement plan has two phases: accumulation, where a SIP builds the corpus, and decumulation, where a systematic withdrawal plan (SWP) turns it into monthly income. This calculator models both in one go.
Enter your SIP, the years and expected return while investing, then the monthly withdrawal, the years it should last and the return during withdrawals. The calculator shows the corpus at the switch-over, how long withdrawals last, the balance left and the maximum withdrawal that would last the full period.
How to use the SIP to SWP Calculator
- Monthly SIP (₹) (sample: 15,000)
- SIP Period (years) (sample: 20)
- Return During SIP (% per year) (sample: 12)
- Monthly Withdrawal (₹) (sample: 60,000)
- Withdrawal Period (years) (sample: 25)
- Return During Withdrawals (% per year) (sample: 8)
- Press Plan SIP to SWP (results also refresh as you type). The result card shows the Corpus When Withdrawals Start, along with Withdrawals last, Balance left at the end, Total withdrawn and Max withdrawal lasting the full period.
Formula used
Corpus at switch = SIP × ((1 + i₁)ⁿ − 1) ÷ i₁ × (1 + i₁)
- Withdrawal phase = Balance = Balance × (1 + i₂) − W each month
- Max sustainable W = Corpus × i₂ ÷ (1 − (1 + i₂)^−m)
i₁ and i₂ are the monthly returns in each phase; n and m the months of each phase.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly SIP (₹) | 15,000 |
| SIP Period (years) | 20 |
| Return During SIP (% per year) | 12 |
| Monthly Withdrawal (₹) | 60,000 |
| Withdrawal Period (years) | 25 |
| Return During Withdrawals (% per year) | 8 |
| Result | Value |
|---|---|
| Corpus When Withdrawals Start | ₹1,49,87,219 |
| Withdrawals last | 25 years |
| Balance left at the end | ₹5,29,47,239 |
| Total withdrawn | ₹1,80,00,000 |
| Max withdrawal lasting the full period | ₹1,15,674 |
Tips for using the SIP to SWP Calculator
- Shift gradually from equity to hybrid or debt funds in the years before withdrawals start.
- SWP income is taxed only on the gains portion of each withdrawal.
- Increase withdrawals with inflation only if the balance can support it.