SWP with Inflation Calculator
Plan a Systematic Withdrawal Plan with inflation-adjusted withdrawals. See total withdrawn, balance left and how long your corpus lasts at a given return.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the SWP with Inflation Calculator Works
This calculator models a Systematic Withdrawal Plan (SWP) where your monthly withdrawal rises with inflation each year, so your real income stays constant. Enter your initial corpus, the starting monthly withdrawal, the expected return, the inflation rate and the period, and it returns the total withdrawn, the balance left, and how long the corpus lasts.
The Formula
The tool runs month by month. Each month:
- Corpus grows: balance = balance × (1 + return ÷ 12)
- Withdrawal is taken: balance = balance − monthly withdrawal
At the start of every new year, the monthly withdrawal is increased by the inflation rate:
New withdrawal = previous withdrawal × (1 + inflation rate)
If the balance ever falls below the required withdrawal, the corpus is depleted and the calculator reports how long it lasted.
Worked Example
Suppose you have a ₹50,00,000 corpus, withdraw ₹25,000 per month to start, expect a 9% return, inflate withdrawals by 6% a year, over 20 years:
- Year 1 withdrawal = ₹25,000/month; Year 2 = ₹26,500; Year 3 = ₹28,090, and so on
- Total withdrawn ≈ ₹1,10,35,677
- Balance left after 20 years ≈ ₹41,29,110 (the corpus survives the full term)
Without inflation (a flat ₹25,000), you would withdraw only ₹60,00,000 and end with about ₹1,33,48,586 — but your spending power would have halved.
Inflation-Adjusted vs Flat Withdrawal (₹50 lakh, 9% return, 20 years)
| Withdrawal type | Total withdrawn | Balance after 20 years |
|---|---|---|
| Flat ₹25,000/month | ₹60,00,000 | ₹1,33,48,586 |
| Rising 6%/year | ₹1,10,35,677 | ₹41,29,110 |
Why Inflation Matters in Retirement
A withdrawal that looks comfortable today erodes badly over a long retirement. Inflation-adjusting protects your lifestyle, but it pulls more money out each year, so the corpus must either be larger or earn enough to keep up. This calculator shows whether your plan survives the full horizon.
Important Notes
- Returns are assumed constant; real markets fluctuate, and a poor early sequence of returns can deplete a corpus faster (sequence-of-returns risk).
- Withdrawals are increased annually by the inflation rate in this model.
- SWP withdrawals from mutual funds are partial redemptions, so the gains portion is taxable as capital gains.
- Keep the starting withdrawal sustainable — a rule of thumb is an initial rate of around 3% to 4% of the corpus per year.
To build the corpus before drawing it down, use a SIP or step-up SIP calculator; for a guaranteed-income alternative, compare an annuity via the NPS calculator.
Frequently asked questions
How does an SWP with inflation work?+
Each month your remaining corpus first earns one-twelfth of the annual return, then a fixed withdrawal is taken. To keep your spending power constant, the monthly withdrawal is increased by the inflation rate at the start of every new year, so later withdrawals are larger in rupee terms.
Why adjust withdrawals for inflation?+
A flat withdrawal loses purchasing power over time — ₹25,000 buys far less in 20 years. Raising the withdrawal by inflation each year keeps your real income steady, but it drains the corpus faster, so the calculator shows whether your money lasts the full period.
How long will a 50 lakh corpus last?+
With a ₹50,00,000 corpus, a ₹25,000 monthly withdrawal rising 6% a year and a 9% return, the corpus survives the full 20 years and still has about ₹41,29,110 left, while you withdraw roughly ₹1.10 crore over the period.
What return and inflation should I assume?+
Use a conservative, sustainable return — many retirees assume 8% to 9% from a balanced portfolio. For inflation, 5% to 7% is a common long-term assumption. Lower the return or raise the inflation to stress-test whether your corpus survives.
Is SWP income taxable?+
Yes. Each SWP withdrawal from a mutual fund is treated as a partial redemption, so the gains portion is subject to capital-gains tax depending on the fund type and holding period. Only the gain, not the full withdrawal, is taxed. Check the current rules for your fund.