SWP Calculator: Formula and Examples
Project systematic withdrawals, remaining capital, and possible depletion.
How the calculation works
SWP means systematic withdrawal plan. The model uses a constant return; actual return sequences can produce different depletion dates. A final withdrawal may be smaller than the requested amount.
SWP formula
Each month, apply the equivalent monthly return and the selected withdrawal timing. A withdrawal cannot exceed the amount available.
Worked example
At 0%, $12,000 with $1,000 monthly withdrawals is depleted after 12 payments.
Inputs, assumptions, and interpretation
Amounts and rates apply only to the defined scenario. For projections, returns remain constant and timing follows the selected input. Taxes, market variability, and unentered costs are excluded.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see Investor.gov introduction to investment returns.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
What happens when the portfolio runs out?
Withdrawals stop when available funds are exhausted. The final withdrawal is capped at the balance, and the result reports the depletion month.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.