SWP calculator
For money you’re drawing down rather than building up. An SWP — a systematic withdrawal plan — takes a fixed amount out every month while the rest stays invested. This shows how long the balance could last.
Illustrative only — this is not a projection or a promise of returns. Every figure below is arithmetic applied to the rate of return you typed in. H2 Investment is not suggesting that rate, forecasting it, or promising it. Returns are market-linked, vary from year to year, and can be negative.
What this is, and what it isn’t
This is arithmetic on the numbers you typed. It compounds them at the rate you chose and shows you the result. That is all it does.
It is an illustration, not a projection. It is not a forecast, not a recommendation, and not an offer. Nobody knows what any investment will return, so the rate you enter is an assumption you are making, not a rate anyone is offering you. Real returns arrive unevenly — good years, flat years and falling years, in an order nobody can predict — and that order matters as much as the average.
Use the output the way you’d use a rough estimate on the back of an envelope: to see whether the shape of a plan is roughly right, not to decide what a specific rupee amount will be worth on a specific date.
Read the “money lasts until” figure as the optimistic end of a range rather than as a date. Falling markets early in a withdrawal plan shorten it, sometimes by years.
What this calculation assumes
Each month the calculator applies one month’s return to the balance, then subtracts your withdrawal. If the withdrawals outrun the returns the balance falls and eventually reaches zero — showing you when that happens is the point of the tool, not a fault in it. The assumptions:
- The same return every month, including the bad ones. This is the big one. A drawdown is far more exposed to a poor first few years than a portfolio you’re still adding to, because you are selling units while the price is low and those units never come back. Two people with identical average returns can run out years apart depending on when the falls happened. The calculator cannot show you that, and it is the main risk in this kind of plan.
- The withdrawal never changes. No inflation increase, no extra withdrawal for an emergency.
- No tax deducted. Each withdrawal redeems units and may attract capital gains tax, so what lands in your bank account will be less than what this shows.
- No exit load. Many schemes charge one on units redeemed within a set period.
Talk to us
If you’d rather go through your own numbers with a person than a form, that’s what we’re for. You’ll speak to Himani, who runs H2 — the same person every time.
Other calculators
See all calculators. None of these ask for your name, your phone number or your PAN. Nothing you type is stored or sent anywhere. Use them as often as you like without hearing from us.