SWP Calculator

This tool models a Systematic Withdrawal Plan (SWP) by projecting how regular withdrawals from a starting corpus affect the account over time. It is useful for retirees, financial planners, and advisors evaluating sustainability across scenarios. The core workflow accepts inputs such as starting corpus, withdrawal amount per period, withdrawal frequency, horizon, and expected return, with optional inflation and tax adjustments. The model produces a year-by-year balance, withdrawal, and depletion indicator, enabling quick sensitivity checks and scenario comparisons. The approach is deterministic and transparent, avoiding hidden assumptions about market behavior.
The approach relies on discrete-time steps where each period updates the balance by applying the assumed return and subtracting the period's withdrawal. Inflation-adjusted withdrawals can be toggled to reflect real-term spending power. Outputs are formatted for local currency and period units, aiding clarity in planning discussions. This tool supports multiple scenarios side-by-side to compare outcomes under different return paths, withdrawal rules, or inflation assumptions. It is suitable for quick feasibility checks, client discussions, and planning iterations. Users should treat results as projections rather than guarantees and consider fees, taxes, and changing market conditions outside the model.
Typical use cases include retirement drawdown planning, cash-flow forecasting for pensions, and evaluating the longevity of a portfolio under fixed or inflation-adjusted withdrawals.