What this SWP scenario models
A systematic withdrawal plan, commonly called an SWP, removes a chosen amount from an investment on a regular schedule. This calculator divides the entered nominal annual return by 12, applies that rate monthly, and processes the withdrawal at the selected start or end of month. An annual increase can model rising spending.
Depletion is detected month by month
If the modeled balance cannot fund the full scheduled withdrawal, the calculator withdraws only the remaining amount, reports the depletion month, and stops the schedule. An end-of-month withdrawal receives that month’s modeled return before money is removed; a start-of-month withdrawal does not. This timing difference compounds over long periods.
Smooth returns hide sequence risk
The model uses one constant monthly rate. Real funds fluctuate, and poor returns early in a withdrawal period can cause much faster depletion than the same average return arriving later. Market loss, volatility, fees, taxes, exit loads, fund expenses, distributions, cash holdings, withdrawal processing dates, and rounding are not represented.
A sustainable withdrawal is not guaranteed
A remaining balance in this scenario does not prove the withdrawal is safe or sustainable. Test lower returns, negative periods, higher withdrawal growth, and longer horizons. Use the SIP calculator for the accumulation phase and obtain regulated advice for tax, product, and retirement decisions.
This is an educational projection, not investment, mutual-fund, retirement, tax, legal, or financial advice. Expected return is not promised, capital can fall, and actual withdrawals can exhaust an account much earlier than this smooth-rate model.