Because expenses rise. Fixing the withdrawal means a 40–50% cut in real income over 15 years at 6% inflation.
SWP Calculator with Inflation
Model withdrawals that increase every year with inflation and see how long your corpus really survives. This is the honest version of retirement-income planning: a flat ₹30,000 today will not cover the same expenses in 2040.
Corpus exhausted after
17 yr
Total withdrawn
₹1,01,63,607
Growth earned meanwhile
₹51,63,607
Max starting withdrawal that lasts 20 yrs
₹26,288
Withdrawal in year 20
₹90,768
Year-by-year corpus
| Year | Opening | Withdrawn | Growth | Closing |
|---|---|---|---|---|
| 1 | ₹50,00,000 | ₹3,60,000 | ₹3,99,010 | ₹50,39,010 |
| 2 | ₹50,39,010 | ₹3,81,600 | ₹4,01,288 | ₹50,58,698 |
| 3 | ₹50,58,698 | ₹4,04,496 | ₹4,01,906 | ₹50,56,108 |
| 4 | ₹50,56,108 | ₹4,28,766 | ₹4,00,613 | ₹50,27,955 |
| 5 | ₹50,27,955 | ₹4,54,492 | ₹3,97,134 | ₹49,70,597 |
| 6 | ₹49,70,597 | ₹4,81,761 | ₹3,91,162 | ₹48,79,997 |
| 7 | ₹48,79,997 | ₹5,10,667 | ₹3,82,358 | ₹47,51,689 |
| 8 | ₹47,51,689 | ₹5,41,307 | ₹3,70,348 | ₹45,80,730 |
| 9 | ₹45,80,730 | ₹5,73,785 | ₹3,54,716 | ₹43,61,661 |
| 10 | ₹43,61,661 | ₹6,08,212 | ₹3,35,005 | ₹40,88,453 |
| 11 | ₹40,88,453 | ₹6,44,705 | ₹3,10,708 | ₹37,54,456 |
| 12 | ₹37,54,456 | ₹6,83,387 | ₹2,81,268 | ₹33,52,337 |
Show all 18 rows
| 13 | ₹33,52,337 | ₹7,24,391 | ₹2,46,072 | ₹28,74,018 |
| 14 | ₹28,74,018 | ₹7,67,854 | ₹2,04,441 | ₹23,10,605 |
| 15 | ₹23,10,605 | ₹8,13,925 | ₹1,55,632 | ₹16,52,312 |
| 16 | ₹16,52,312 | ₹8,62,761 | ₹98,825 | ₹8,88,376 |
| 17 | ₹8,88,376 | ₹9,14,527 | ₹33,120 | ₹6,970 |
| 18 | ₹6,970 | ₹6,970 | ₹0 | ₹0 |
- Withdrawal at the start of each month; growth credited monthly at 8% p.a. Withdrawal rises 6% every year.
How the SWP Calculator with Inflation works
A flat SWP quietly loses purchasing power. Here the monthly withdrawal is stepped up once a year by your inflation assumption, so the income keeps pace with expenses — and the corpus takes a bigger hit each year.
Compare the "max starting withdrawal" here with the flat SWP calculator: for the same corpus and period it is noticeably lower, which is the real budget you should plan around.
W(year y) = W₁ × (1 + π)^(y−1); Balance(m+1) = ( Balance(m) − W ) × (1 + r/12)
- W₁
- first-year monthly withdrawal
- π
- annual inflation
- r
- annual return
Worked example
- Total investment (corpus): ₹50,00,000
- Monthly withdrawal (first year): ₹30,000
- Expected return (p.a.): 8%
- Annual increase in withdrawal: 6%
- Withdrawal period: 20 Yr
With ₹30,000 rising 6% a year, the withdrawal reaches about ₹90,000 a month by year 20. The ₹50 lakh corpus at 8% is exhausted in about 17 years — versus lasting comfortably when the withdrawal stays flat.