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GrowThenDraw Updated for 2026

SIP → SWP Calculator — United States

One timeline for the whole plan: build a corpus with monthly investing, then turn it into a monthly income — taxed the way the IRS actually taxes it.

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

10% — S&P 500 long-run average, used for both phases

Your gains stack on top of this across the capital-gains brackets.

Net monthly income, first withdrawal year (after tax)
$2,237
Lasts all 30 withdrawal years with money left over
Portfolio at the switch
$382,848
Total invested
$120,000
Total tax (withdrawals)
$121,495

The most that portfolio can sustain for the full 30 withdrawal years: $3,332/month before tax.

$948.2K$1.9MYear 1 (grow): $6,335Year 2 (grow): $13,334Year 3 (grow): $21,065Year 4 (grow): $29,606Year 5 (grow): $39,041Year 6 (grow): $49,464Year 7 (grow): $60,979Year 8 (grow): $73,700Year 9 (grow): $87,752Year 10 (grow): $103,276Year 11 (grow): $120,425Year 12 (grow): $139,371Year 13 (grow): $160,300Year 14 (grow): $183,420Year 15 (grow): $208,962Year 16 (grow): $237,178Year 17 (grow): $268,349Year 18 (grow): $302,784Year 19 (grow): $340,825Year 20 (grow): $382,848Year 21 (draw): $391,262Year 22 (draw): $400,557Year 23 (draw): $410,824Year 24 (draw): $422,167Year 25 (draw): $434,698Year 26 (draw): $448,541Year 27 (draw): $463,833Year 28 (draw): $480,727Year 29 (draw): $499,390Year 30 (draw): $520,007Year 31 (draw): $542,782Year 32 (draw): $567,943Year 33 (draw): $595,738Year 34 (draw): $626,444Year 35 (draw): $660,366Year 36 (draw): $697,839Year 37 (draw): $739,236Year 38 (draw): $784,968Year 39 (draw): $835,489Year 40 (draw): $891,299Year 41 (draw): $952,954Year 42 (draw): $1,021,065Year 43 (draw): $1,096,309Year 44 (draw): $1,179,431Year 45 (draw): $1,271,257Year 46 (draw): $1,372,698Year 47 (draw): $1,484,762Year 48 (draw): $1,608,560Year 49 (draw): $1,745,322Year 50 (draw): $1,896,404Y1Y10Y19Y28Y37Y46Y50
Grow phaseDraw phase
Received (net): $778,505Tax: $121,495Still invested: $1,896,404
Received (net)TaxStill invested
YearPhaseCash flowTaxEnd balance
1Invest$6,000$0$6,335
2Invest$6,000$0$13,334
3Invest$6,000$0$21,065
4Invest$6,000$0$29,606
5Invest$6,000$0$39,041
6Invest$6,000$0$49,464
7Invest$6,000$0$60,979
8Invest$6,000$0$73,700
9Invest$6,000$0$87,752
10Invest$6,000$0$103,276
11Invest$6,000$0$120,425
12Invest$6,000$0$139,371
13Invest$6,000$0$160,300
14Invest$6,000$0$183,420
15Invest$6,000$0$208,962
16Invest$6,000$0$237,178
17Invest$6,000$0$268,349
18Invest$6,000$0$302,784
19Invest$6,000$0$340,825
20Invest$6,000$0$382,848
21Withdraw$26,848$3,152$391,262
22Withdraw$26,720$3,280$400,557
23Withdraw$26,605$3,395$410,824
24Withdraw$26,500$3,500$422,167
25Withdraw$26,405$3,595$434,698
26Withdraw$26,319$3,681$448,541
27Withdraw$26,242$3,758$463,833
28Withdraw$26,171$3,829$480,727
29Withdraw$26,108$3,892$499,390
30Withdraw$26,050$3,950$520,007
31Withdraw$25,998$4,002$542,782
32Withdraw$25,951$4,049$567,943
33Withdraw$25,908$4,092$595,738
34Withdraw$25,869$4,131$626,444
35Withdraw$25,834$4,166$660,366
36Withdraw$25,803$4,197$697,839
37Withdraw$25,774$4,226$739,236
38Withdraw$25,748$4,252$784,968
39Withdraw$25,725$4,275$835,489
40Withdraw$25,703$4,297$891,299
41Withdraw$25,684$4,316$952,954
42Withdraw$25,667$4,333$1,021,065
43Withdraw$25,651$4,349$1,096,309
44Withdraw$25,636$4,364$1,179,431
45Withdraw$25,624$4,376$1,271,257
46Withdraw$25,612$4,388$1,372,698
47Withdraw$25,601$4,399$1,484,762
48Withdraw$25,592$4,408$1,608,560
49Withdraw$25,583$4,417$1,745,322
50Withdraw$25,575$4,425$1,896,404

Why chain SIP and SWP together?

Most people run a SIP calculator, write down the corpus, and then guess at retirement. This planner connects the two halves: your monthly investing (dollar-cost averaging) builds the corpus, and the withdrawal phase starts with exactly that corpus — and, just as important, exactly your contributed amount as its cost basis. That basis is what decides how much of each withdrawal is taxable, and it's the input everyone else makes you guess.

The result answers the question people actually have: "If I invest this much for this long, what monthly income does it buy me — after tax — and how long does it last?"

How the withdrawal is taxed

In a taxable brokerage account, each year's realized gains stack on top of your other income across the 2026 federal long-term capital-gains brackets (0%, 15%, 20%), plus the 3.8% NIIT where it applies. In a traditional 401(k), the whole withdrawal is ordinary income; qualified Roth IRA withdrawals are tax-free. Pick the account and the planner switches the math. State tax is out of scope and noted as such.

Related reading

Frequently asked questions

What does the SIP SWP calculator actually compute?

Two chained simulations: monthly contributions compounding for your investing years, then monthly withdrawals from the resulting corpus for your withdrawal years. The tax on each withdrawal year uses your real cost basis — total contributions — carried over automatically from the investing phase.

Why is my withdrawal-phase tax so low at the start?

Early withdrawals are mostly your own contributions coming back, which are never taxed. As the corpus keeps growing and your basis depletes, a bigger share of each withdrawal is gain, so the tax column rises over the years — exactly how average-cost taxation behaves in real life.

Can the money last forever?

If your withdrawal rate stays below the corpus's growth rate, the balance keeps rising and never depletes — the chart will show green bars to the end of the horizon. Above that line, the bars shrink and turn red in the year the money runs out.

Tax figures for 2026 last verified 3 July 2026 against the official source — how we calculate.

GrowThenDraw is not a registered investment adviser, broker-dealer, or tax preparer, and is not affiliated with the SEC, FINRA, or the IRS. All results are educational estimates only — consult a licensed financial advisor or CPA before acting.

Relevant bodies in this jurisdiction: SEC / FINRA (investments), IRS (tax).