Systematic Withdrawal Plan (SWP) Calculator

Simulate regular withdrawals from your investment and see how long your money lasts.

Enter your investment details to calculate how much you can withdraw periodically, the remaining balance, and your total gain or loss over time.

Examples

See how SWP works with different scenarios.

Retirement Monthly Income

Basic

Withdraw $2,000 every month for 15 years from a $300,000 investment at 7% annual return.

Initial Investment: 300000 USD

Withdrawal Amount: 2000 USD

Annual Return Rate: 7%

Duration (years): 15

Withdrawal Frequency: Monthly

Currency: USD

Quarterly Withdrawal Plan

Basic

Withdraw $10,000 every quarter for 10 years from a $400,000 investment at 8% annual return.

Initial Investment: 400000 USD

Withdrawal Amount: 10000 USD

Annual Return Rate: 8%

Duration (years): 10

Withdrawal Frequency: Quarterly

Currency: USD

Yearly Education Funding

Basic

Withdraw $25,000 every year for 8 years from a $200,000 investment at 6% annual return.

Initial Investment: 200000 USD

Withdrawal Amount: 25000 USD

Annual Return Rate: 6%

Duration (years): 8

Withdrawal Frequency: Yearly

Currency: USD

Aggressive Monthly Withdrawal

Basic

Withdraw $5,000 every month for 5 years from a $250,000 investment at 10% annual return.

Initial Investment: 250000 USD

Withdrawal Amount: 5000 USD

Annual Return Rate: 10%

Duration (years): 5

Withdrawal Frequency: Monthly

Currency: USD

Other Titles
Understanding Systematic Withdrawal Plan (SWP) Calculator: A Comprehensive Guide
Master your investment withdrawals with the SWP Calculator.

What is a Systematic Withdrawal Plan (SWP)?

  • Definition and Purpose
  • How SWP Differs from SIP
  • Benefits of SWP
A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount from their investment at regular intervals, providing a steady income stream while the remaining investment continues to grow.
Key Features of SWP

Common SWP Use Cases

  • Retirement income planning
  • Education funding
  • Monthly expense management

Step-by-Step Guide to Using the SWP Calculator

  • Inputting Your Investment Details
  • Choosing Withdrawal Frequency
  • Interpreting Results
To use the SWP Calculator, enter your initial investment, desired withdrawal amount, expected annual return rate, duration, withdrawal frequency, and currency. The calculator will simulate your withdrawals and show the remaining balance and total gain or loss.
How to Use the Calculator

Step-by-Step Examples

  • Entering $100,000 as initial investment, $1,000 monthly withdrawal, 8% return, 10 years duration.
  • Selecting quarterly withdrawals for a $500,000 investment.

Real-World Applications of SWP

  • Retirement Planning
  • Education and Major Expenses
  • Regular Income Generation
SWP is widely used for retirement planning, funding education, or managing large recurring expenses. It helps ensure a predictable cash flow while keeping your investment working for you.
Practical SWP Scenarios

Application Examples

  • Using SWP for monthly retirement income.
  • Funding a child's college tuition with annual withdrawals.

Common Misconceptions and Correct Methods

  • SWP vs. Lump Sum Withdrawals
  • Impact of Market Fluctuations
  • Withdrawal Rate Risks
Many believe SWP guarantees returns or that the fund will last forever. In reality, high withdrawal rates or poor market performance can deplete your investment early. The calculator helps you visualize these risks.
Avoiding Common SWP Mistakes

Misconception Examples

  • Withdrawing more than the investment earns annually.
  • Not adjusting withdrawals for inflation.

Mathematical Derivation and Examples

  • SWP Calculation Formula
  • Monthly, Quarterly, Yearly Compounding
  • Worked Examples
The SWP calculation applies the periodic return to the remaining balance, then subtracts the withdrawal. For monthly withdrawals, the annual rate is converted to a monthly rate. The process repeats for each period until the duration ends or the fund is depleted.
Sample Calculation

Mathematical Examples

  • $100,000 invested, $1,000 withdrawn monthly, 8% annual return, 10 years duration.
  • $250,000 invested, $5,000 withdrawn monthly, 10% annual return, 5 years duration.