Step Up SWP Calculator

Starting Lump Sum (₹): 1 Cr

Monthly SWP Amount (₹): 25,000

Annual Step-Up (%): 10%

Expected Rate of Return (% per year): 12%

Time Period (Years): 10 years

Inflation Rate (% per year): 7%

● Withdrawal● Remainder

Total Withdrawal (₹):

Remaining Value (₹):

Inflation-Adjusted Value (₹):

Uncertainty-Adjusted Range (₹):

If you found this useful, check out the Arthgyaan step-up SIP calculator.

If you are looking to understand how to best manage your mutual fund portfolio, you can get a free Mutual fund portfolio review.

What is a step-up SWP?

SIP SWP and STP

All of these are standing instructions that get executed as per a schedule you specify:

Systematic Investment Plan (SIP): Money from a bank account is invested into a mutual fund, typically once a month
Systematic Transfer Plan (STP): Units from a mutual fund are redeemed to invest in another mutual fund of the same AMC
Systematic Withdrawal Plan (SWP): This is the reverse of the SIP. You sell the units from a mutual fund to send money to a bank account

A SWP is an instruction to a mutual fund to sell a units worth a fixed amount of money, typically every month, to give you income in retirement. The amount invested stays the same every month.

A step-up SWP is a retirement income tool where you increase the monthly amount withdrawn, say by 5% or 10%, every year from your mutual funds. This way your income in retirement keeps pace with inflation.

You can see how the monthly amounts in a SWP and step-up SWP change like this:

Year	SWP per month	10% Step-up SWP per month
1	1,00,000	1,00,000
2	1,00,000	1,10,000
3	1,00,000	1,21,000
4	1,00,000	1,33,100
5	1,00,000	1,46,410
6	1,00,000	1,61,051
7	1,00,000	1,77,156
8	1,00,000	1,94,872
9	1,00,000	2,14,359
10	1,00,000	2,35,795

To understand more about SWP, please refer to these articles:

How to use the Arthgyaan step-up SWP calculator?

You need to enter just these numbers to get started with the Arthgyaan step-up SIP calculator:

Starting Lump Sum: This is the money that you already have as your retirement corpus
Monthly SWP Amount: This is the money you will withdraw every month in the first year
Time Period (Years): Your step-up SWP will run for these many years. For most people this will be until the end of the projected lifespan of the younger spouse

These inputs are optional and can be left as-is

Annual Step-Up: This is the step-up amount. You will increase the SWP amount by this amount next year to adjust for general (food, clothing, utilities, entertainment), lifestyle (travel) and medical inflation
Expected Rate of Return: Enter the return you think you will get. 12% is a typical number but it will vary year-on-year. We will keep this number fixed but in real life it will fluctuate year-on-year
Inflation Rate: This is how much the value of the corpus will reduce due to inflation (prices of things going up over time). This will give you a more realistic value of how much you will leave behind, in today’s money, for your children

How to understand the results of the Arthgyaan step-up SWP calculator?

The output of the Arthgyaan step-up SWP calculator has two easy to understand parts:

a ring chart that shows how much your took out as income vs. the amount left over in the mutual fund
four numbers that we now explain below

These are the numbers what have the result of the Arthgyaan step-up SWP calculator:

Total Withdrawal: This is the total amount that you will take out of your mutual funds over your retirement
Remaining Value: This is the final amount that you are expected to be left with that will go to your children and legal heirs
Inflation-Adjusted Value: This is the remaining value left over after you adjust for prices going up over time
Uncertainty-Adjusted Range: Arthgyaan is proud to say that the Arthgyaan step-up SWP calculator is the first to show the uncertainty of investing in the stock market by showing you a range of numbers for the corpus you are expected to leave behind after adjusting for inflation. The range will change every time you recalculate

To understand more about Uncertainty-Adjusted Range, please refer to our detailed article that will help you adjust your expectations from investing in the stock market:

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