SWP calculator
A systematic withdrawal plan takes a fixed amount from an investment every month while the rest keeps earning. Enter the starting value, the monthly withdrawal, an assumed yearly return and the plan length. You see whether the money lasts and what remains.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the starting portfolio and the monthly withdrawal.
- Enter the return you assume and the length of the plan.
- Optionally add a yearly increase of the withdrawal.
How it works
- Monthly rate = yearly return ÷ 12.
- Each month: balance = balance × (1 + monthly rate) − withdrawal.
- The withdrawal rises by the yearly increase at the start of each new year.
- If the balance cannot cover a withdrawal, the plan stops and shows how long it lasted.
Worked example
100,000 with 1,000 withdrawn monthly and a 0% return is empty after 100 payments: 8 years 4 months. With a 12% return the monthly growth of 1,000 equals the withdrawal, so the balance stays at 100,000 and total withdrawals over 5 years are 60,000.
Tips
- Try a lower return to see how sensitive the plan is.
- A steady return is a simplification; real results vary from year to year.
- This is arithmetic, not financial advice.
Frequently asked questions
How does the plan run month by month?
Each month the balance grows by return ÷ 12, then the withdrawal is taken. If the balance is smaller than the withdrawal, the rest is paid out and the plan stops.
Is the return guaranteed?
No. The return is an assumption you type in. Real markets rise and fall, and losses early in a plan can empty it sooner than a steady average suggests.
What does the yearly increase do?
It raises the withdrawal by that percent at the start of every year after the first, which is a simple way to keep up with rising prices. With 0 the withdrawal stays flat.
Are taxes and fees included?
No. Taxes, fund charges and fees are not modelled; lower the return to allow for them.
What if the withdrawal equals the growth?
Then the balance stays the same. At 12% a year, 100,000 earns 1,000 a month, so withdrawing 1,000 a month leaves 100,000 after any number of years.