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GrowThenDraw Updated for 2026/27

SIP → SWP Calculator — United Kingdom

One timeline for the whole plan: build a pot with regular monthly investing, then turn it into a monthly income — with UK capital gains tax done properly.

Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources

Your plan

Phase 1 — invest

Phase 2 — withdraw

Tip: set this to your inflation assumption (~2.5%) to keep your income's buying power constant.

Assumptions

7% — FTSE 100 long-run average, used for both phases

Income after your Personal Allowance and other Income Tax reliefs. After the £3,000 gain exemption, gains use the remaining £37,700 basic-rate band at 18%, then 24%.

Net monthly income, first withdrawal year (after tax)
£2,295
Money runs out in withdrawal year 14
Portfolio at the switch
£261,983
Total invested
£120,000
Total tax (withdrawals)
£44,138

The most that portfolio can sustain for the full 30 withdrawal years: £1,732/month before tax.

£131k£262kYear 1 (grow): £6,232Year 2 (grow): £12,915Year 3 (grow): £20,082Year 4 (grow): £27,766Year 5 (grow): £36,005Year 6 (grow): £44,841Year 7 (grow): £54,314Year 8 (grow): £64,473Year 9 (grow): £75,367Year 10 (grow): £87,047Year 11 (grow): £99,572Year 12 (grow): £113,003Year 13 (grow): £127,404Year 14 (grow): £142,847Year 15 (grow): £159,406Year 16 (grow): £177,162Year 17 (grow): £196,201Year 18 (grow): £216,617Year 19 (grow): £238,508Year 20 (grow): £261,983Year 21 (draw): £249,759Year 22 (draw): £236,652Year 23 (draw): £222,598Year 24 (draw): £207,527Year 25 (draw): £191,367Year 26 (draw): £174,039Year 27 (draw): £155,458Year 28 (draw): £135,534Year 29 (draw): £114,169Year 30 (draw): £91,260Year 31 (draw): £66,695Year 32 (draw): £40,355Year 33 (draw): £12,110Y1Y7Y13Y19Y25Y31Y34
Grow phaseDraw phaseMoney runs out
Received (net): £358,110Tax: £44,138
Received (net)TaxStill invested
YearPhaseCash flowTaxEnd balance
1Invest£6,000£0£6,232
2Invest£6,000£0£12,915
3Invest£6,000£0£20,082
4Invest£6,000£0£27,766
5Invest£6,000£0£36,005
6Invest£6,000£0£44,841
7Invest£6,000£0£54,314
8Invest£6,000£0£64,473
9Invest£6,000£0£75,367
10Invest£6,000£0£87,047
11Invest£6,000£0£99,572
12Invest£6,000£0£113,003
13Invest£6,000£0£127,404
14Invest£6,000£0£142,847
15Invest£6,000£0£159,406
16Invest£6,000£0£177,162
17Invest£6,000£0£196,201
18Invest£6,000£0£216,617
19Invest£6,000£0£238,508
20Invest£6,000£0£261,983
21Withdraw£27,536£2,464£249,759
22Withdraw£27,375£2,625£236,652
23Withdraw£27,224£2,776£222,598
24Withdraw£27,083£2,917£207,527
25Withdraw£26,952£3,048£191,367
26Withdraw£26,830£3,170£174,039
27Withdraw£26,684£3,316£155,458
28Withdraw£26,542£3,458£135,534
29Withdraw£26,410£3,590£114,169
30Withdraw£26,287£3,713£91,260
31Withdraw£26,172£3,828£66,695
32Withdraw£26,065£3,935£40,355
33Withdraw£25,965£4,035£12,110
34Withdraw£10,986£1,262£0

Why chain the two calculators?

Running them separately makes you guess the one number that decides your CGT: the cost basis of your pot. Chaining fixes that — the withdrawal phase starts with exactly the pot your investing built and exactly your contributions as its book cost, which is what HMRC's Section 104 average-cost rules tax you on.

Inside a Stocks & Shares ISA all of this is moot — withdrawals are tax-free and the planner will show it. In a general investment account, each year's gains get the £3,000 annual exempt amount and are then taxed at 18% or 24% by band.

A realistic retirement question, answered

"If I put away £500 a month for twenty years, what monthly income does that buy — after tax — and until when?" The chart shows the whole arc: bars rise through the investing years, then fall (or keep rising, if your withdrawal rate is modest) through the drawdown years, turning red only if the pot runs out.

Related reading

Frequently asked questions

Is this the same as pension drawdown?

No — drawdown from a SIPP or workplace pension is taxed as income under different rules. This planner models investing and withdrawing through an ISA (tax-free) or a general investment account (capital gains tax with the annual exempt amount).

How does the calculator know my cost basis?

Because it watched you build the pot: the withdrawal phase carries over your total contributions as book cost automatically. That's the number a standalone SWP calculator forces you to look up or guess.

Which CGT band applies to the withdrawal years?

Enter your annual taxable income after the Personal Allowance and other Income Tax reliefs. The calculator deducts the £3,000 gain exemption, uses any room left in the £37,700 basic-rate band at 18%, and applies 24% above it, so a gain can straddle both rates.

Tax figures for 2026/27 last verified 26 July 2026 against the official sourcehow we calculate.

GrowThenDraw is not authorised or regulated by the Financial Conduct Authority and does not provide financial advice. All results are educational estimates only — consider advice from an FCA-authorised financial adviser before acting.

Relevant bodies in this jurisdiction: FCA (financial conduct), HMRC (tax).