Systematic Withdrawal Plan (SWP) Calculator with Inflation

SWP (Systematic Withdrawal Plan) calculator with inflation helps you estimate how long your investment will last when you regularly withdraw a fixed amount, adjusting for inflation each year.

Systematic Withdrawal Plan (SWP) with Inflation Formula

You can use this formula to calculate the adjusted withdrawal each year:

Adjusted Withdrawal = Initial Withdrawal × (1 + Inflation Rate)^Year

Then, use a basic investment depletion formula:

Future Value = P × (1 + r)^n – (W × ((1 + r)^n – 1) / r)

Where:

  • P = Initial investment
  • r = Annual return rate (decimal)
  • W = Annual withdrawal (increasing yearly with inflation)
  • n = Number of years

Because inflation increases W every year, a spreadsheet or online calculator is best for exact results.

How to Use an Online SWP with Inflation Calculator

Go to any financial calculator like:

swp calculator

  1. Enter:
    • Initial investment amount
    • Expected annual return
    • Monthly withdrawal amount
    • Number of years
    • Annual inflation rate (if available)

The tool will show how long your funds will last and how inflation affects your withdrawals.

Example

  • Initial Investment: ₹10,00,000
  • Monthly Withdrawal: ₹10,000
  • Expected Return: 10% annually
  • Inflation Rate: 6% annually

Your monthly withdrawal needs to increase every year to match inflation. So, in year 2, it becomes ₹10,600, then ₹11,236 in year 3, and so on.