HaxiTool

SWP Calculator

Estimate your Systematic Withdrawal Plan cash flows, accumulated growth, and ending balance over time.

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Projections Summary

Balance sheet projection at the end of tenure.

Total Amount Withdrawn
$72,000.00
Ending Balance
$106,782.90
SWP Ledger Status

Starting with a $100,000.00 investment growing at 8.00% annually, a monthly withdrawal of $600.00 leaves a final remaining balance of $106,782.90 after 10 years, having distributed $72,000.00 in payouts.

Annual Growth Ledger

Year Opening Balance Annual Withdrawals Accrued Interest Closing Balance

What is a Systematic Withdrawal Plan (SWP)?

A Systematic Withdrawal Plan (SWP) is an investment structure that allows investors to withdraw a fixed amount of money at regular intervals from a mutual fund, ETF, or investment portfolio. SWPs are commonly utilized by retirees to generate regular monthly income from their accumulated retirement nest egg.

The Mathematics of SWP Balance Growth

The balance of an SWP account changes monthly based on the regular withdrawal deductions and the compounding growth rate:

Monthly Return Rate: i = Expected Annual Return % / 12 / 100
Month-end Balance = (Opening Balance - Withdrawal Amount) × (1 + i)

If the monthly withdrawal amount is lower than the monthly interest earned on the principal, the initial investment will continue growing over time. Conversely, if withdrawals exceed interest, the principal will deplete.

Frequently Asked Questions