Reverse SWP Calculator

Find the required initial corpus to generate a specific monthly withdrawal income for retirement without running out of money.

Parameters
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Yrs
Calculated Results
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Visual Projection
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Yearly Breakdowns
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How Much Corpus Do You Need to Fund a Monthly Withdrawal?

A systematic withdrawal plan turns an accumulated corpus into a regular income; the reverse SWP calculator answers the sizing question that comes first, what starting corpus funds a target monthly payout for a given number of years. The maths assumes the remaining balance stays invested, so each payout is partly funded by growth. For example, paying yourself ₹50,000 a month for 20 years at an assumed 8% return needs a corpus of about ₹61.4 lakh. See what an SWP is for how the withdrawals work, including the fact that each payout redeems units at the prevailing NAV.

That corpus is well below the ₹1.2 crore of total payouts, because the balance keeps earning while it is drawn down: roughly ₹58.6 lakh of the payouts is covered by returns earned during the withdrawal period, and the rest comes from the corpus itself. Duration moves the number quickly: the same ₹50,000 payout stretched over 30 years needs about ₹70.4 lakh, and a bigger ₹1,00,000 payout for 20 years at 9% needs about ₹1.15 crore.

Two caveats matter for retirement planning. This calculator models a level withdrawal, so its buying power falls over time: at 6% inflation, ₹50,000 a month is worth roughly ₹15,600 in today's money after 20 years. Use the step-up SWP calculator to see withdrawals that rise with inflation. And a fixed-return projection flatters long retirements, because a poor market early in the payout sequence hurts more than the average return suggests, for a 30-year horizon, keep the initial withdrawal rate near 3-4% and size the full plan with the retirement planner, then watch the year-by-year drawdown in the forward SWP calculator.

Popular Reverse SWP Calculations

Click on any of the popular search scenarios below to load the calculator with pre-configured values:

Frequently Asked Questions

What is a reverse SWP calculator?
It calculates the corpus required to pay a chosen monthly amount for a chosen number of years, assuming the remaining balance stays invested and earns a steady return. A regular SWP calculator runs the projection forward, showing how a given corpus depletes; the reverse version is used for retirement sizing, starting from the income you want and working back to the nest egg.
How much corpus do I need for ₹50,000 a month?
About ₹61.4 lakh to pay ₹50,000 a month for 20 years at an assumed 8% return, or roughly ₹70.4 lakh for 30 years, with a level withdrawal and no inflation adjustment in either case. A payout that must rise with inflation needs a larger starting corpus, which is what the step-up SWP calculator models.
Is the withdrawal adjusted for inflation here?
No, this calculator holds the payout constant in rupee terms, so its purchasing power falls every year. At 6% inflation, ₹50,000 a month is worth about ₹15,600 in today's terms after 20 years. If the income needs to keep pace with prices, use the step-up SWP calculator, which raises the withdrawal by a set percentage each year.
What return should I assume for a withdrawal plan?
More conservative than an accumulation portfolio, because the money has to fund regular payouts while it is invested. A balanced post-retirement mix is typically modelled around 7-8% a year, and the assumed rate interacts with the withdrawal rate you can sustain. The risk is that real returns arrive unevenly: a poor market early in the payout period can shorten a corpus's life even if the long-run average holds up.

Formula & Mathematical Approach

Finds the initial corpus required to support a specific monthly SWP withdrawal schedule.

i=(1+Return Rate100)112−1i = \left(1 + \frac{\text{Return Rate}}{100}\right)^{\frac{1}{12}} - 1
Required Corpus=Monthly Withdrawal×[1−(1+i)−Monthsi]×(1+i)\text{Required Corpus} = \text{Monthly Withdrawal} \times \left[ \frac{1 - (1 + i)^{-\text{Months}}}{i} \right] \times (1 + i)
Show Plain Text / Excel Formula
i = (1 + Return Rate / 100) ^ (1 / 12) - 1
Required Corpus = Monthly Withdrawal * [ (1 - (1 + i) ^ -Months) / i ] * (1 + i)

Key Assumptions

  • Level monthly withdrawals are made at the start of each month.
  • Conservative withdrawal-before-interest sequence is maintained.
  • Return rate is constant over the withdrawal duration.