Monthly SWP vs quarterly or yearly
Most SWPs are monthly because bills are monthly. A monthly SWP also keeps more money invested for longer than one large yearly withdrawal, because each rupee leaves the fund only when you need it. Quarterly SWPs suit expenses such as insurance premiums or school fees. This SWP calculator monthly page assumes monthly payments.
Three monthly amounts worth knowing
- Returns-only withdrawal: roughly the monthly return on your corpus. Withdraw this or less and your capital stays intact in the illustration.
- Level withdrawal for your period: the largest fixed monthly amount that uses up the corpus by the end of the period.
- Your chosen withdrawal: what you actually need. The calculator shows whether it fits between the first two.
Monthly withdrawals from ₹10 lakh
| Monthly SWP | Lasts (20-year plan) | Left after 10 years |
|---|---|---|
| ₹5,000 | Full period | ₹12,98,812 |
| ₹7,500 | Full period | ₹8,38,398 |
| ₹8,500 | 19 yr 0 mo | ₹6,54,232 |
| ₹10,000 | 13 yr 8 mo | ₹3,77,983 |
| ₹12,000 | 10 yr 1 mo | ₹9,652 |
| ₹15,000 | 7 yr 4 mo | Ran out |
Turning a monthly need into a corpus
Work backwards: if you need ₹30,000 a month for 25 years and expect 8%, try different corpus amounts in the calculator until the plan lasts the full period. About ₹40 lakh is needed for a level ₹30,000 — and more if you want the payment to rise with inflation. Add inflation in the optional box to see what your last monthly payment is worth in today’s money.
Picking the SWP date
Choose a date a few days before your main bills fall due, so the money is in your account in time. Leave a small cash buffer of one to three months’ expenses in a savings account, so a delayed payment never causes a problem.