How this calculation works
Test how a starting corpus behaves when you withdraw a fixed cash amount each month. The balance earns the assumed monthly return before the withdrawal. If the money runs out, the last withdrawal is reduced to the available balance; the total withdrawn therefore need not equal the requested payment multiplied by the full term.
Worked example
This example uses illustrative inputs. Your current result is shown above.
With ₹1,00,000 invested, ₹10,000 withdrawn monthly, a 0% return and a 1-year horizon, ten withdrawals use the full ₹1,00,000. The corpus is depleted during month 10; final balance and growth are both ₹0. The final two requested withdrawals cannot be funded.
Assumptions and limits
- Withdrawals are a fixed nominal amount and occur at month-end after growth.
- The return is constant; poor early market returns and sequence-of-returns risk are not modelled.
- Withdrawals stop when the balance is exhausted; tax, exit loads and other costs are excluded.
Questions people ask
Is the withdrawal amount the same as investment income?
No. A withdrawal can include your original capital as well as growth. The growth-generated result reconciles the ending balance and cash withdrawn with the starting investment.
Does a positive ending balance mean this SWP is safe?
It only means the assumed constant-return path funds the withdrawals over the entered term. Real returns and their order can change when depletion occurs.
Will payments rise with inflation?
No. The monthly amount is held fixed. This can reduce purchasing power over time even when the plan lasts for the full term.