Question 1

What is a systematic withdrawal plan (SWP)?

Accepted Answer

A systematic withdrawal plan (SWP) is an arrangement where you withdraw a fixed amount from an invested balance at regular intervals — usually monthly — while the remaining balance stays invested and continues to earn returns. It is often used to generate a steady income from a lump sum during retirement or any drawdown phase.

Question 2

How long will my money last with an SWP?

Accepted Answer

It depends on your starting balance, how much you withdraw each month, and the return your investment earns. This calculator simulates each month — adding returns, then subtracting your withdrawal — and tells you whether the balance lasts the full period you enter or runs out earlier, showing the month and year of depletion if it does.

Question 3

What happens if my withdrawals exceed the returns?

Accepted Answer

If your monthly withdrawal is larger than the return the balance earns in that month, you are drawing down principal. Each month the balance falls, the returns it earns shrink too, which can accelerate depletion. If this continues, the balance eventually reaches zero and no further withdrawals are possible.

Question 4

How is an SWP different from a lumpsum withdrawal?

Accepted Answer

A lumpsum withdrawal takes the entire amount out at once, ending any further growth. An SWP keeps the remaining balance invested and withdraws smaller amounts over time, so the money that stays invested can keep earning returns. This can make a balance last longer than withdrawing everything upfront.

Question 5

Does the order of returns matter for an SWP?

Accepted Answer

In real markets, yes — poor returns early in a withdrawal phase can deplete a balance faster than the same returns arriving later (this is called sequence-of-returns risk). This calculator assumes a single constant rate every month, so it does not model that variation. Treat its result as a smooth-average estimate, not a market forecast.

Question 6

Are these SWP results guaranteed?

Accepted Answer

No. The rate of return you enter is an assumption, not a guarantee, and it ignores fees, taxes and market volatility. Actual outcomes may be better or worse. Use the results as an estimate for planning your withdrawals, not as a promise of how long the balance will last.

Periodic Withdrawal / SWP Calculator

SWP Calculator

Year-wise Breakdown

What is a systematic withdrawal plan?

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