Inputs
Example data
Try these typical scenarios to understand the impact of returns, fees and step ups.
| Scenario | Corpus | Return % | Fee % | Inflation % | Freq | Withdrawal | Step up % |
|---|---|---|---|---|---|---|---|
| Conservative | 3,000,000 | 7 | 1 | 6 | Monthly | 20,000 | 0 |
| Balanced | 5,000,000 | 10 | 1 | 7 | Monthly | 40,000 | 5 |
| Aggressive | 10,000,000 | 12 | 1.5 | 7 | Quarterly | 200,000 | 6 |
Results & Summary
Payout schedule
| # | Date | Start balance | Interest | Fee | Withdrawal | End balance |
|---|
Formula used
Let r_a be expected annual return, f_a annual fee, and n periods per year (12, 4, or 1). Periodic rates:
r_p = (1 + r_a)^{1/n} - 1f_p = (1 + f_a)^{1/n} - 1
For each period t with starting balance B_t and withdrawal W_t:
Interest_t = B_t × r_p, Fee_t = B_t × f_p
B_{t+1} = B_t + Interest_t - Fee_t - W_t
Annual step up in withdrawals is applied after each full year: W ← W × (1 + stepUp). When B_{t+1} < 0, the last withdrawal is trimmed to deplete the account exactly.
If “real terms” is enabled, the effective annual real return is approximated by r_real ≈ (1 + r_a) / (1 + inflation) - 1, applied via the same periodic conversion.
How to use this calculator
- Enter your starting corpus and expected annual return. Add fees and inflation for realism.
- Choose payout frequency and the amount per period. Optional: set a yearly step up for increasing income.
- Click Calculate to generate the schedule, chart, and summary KPIs.
- Toggle real terms to see balances adjusted for inflation.
- Use Download CSV or Download PDF for sharing and record keeping.
FAQs
1) What is an SWP?
An SWP is a plan to withdraw a fixed amount at regular intervals from an investment while the remaining balance continues to grow.
2) Which frequency should I pick?
Most retirees prefer monthly payouts for budgeting. Quarterly or yearly reduce transaction count but make cash flow lumpier.
3) How are returns and fees applied?
Returns and fees are converted to a per‑period rate using geometric compounding and applied on the starting balance each period.
4) What does “real terms” mean?
Results are adjusted for inflation so balances and withdrawals are shown in today’s purchasing power.
5) Why does the last withdrawal change?
To avoid negative balances, the final payout is trimmed so the account exactly reaches zero.
6) Can I model increasing income?
Yes. Use the annual step up to raise the withdrawal after each full year of payouts.
7) Are taxes included?
No. Tax treatment varies. Apply your own estimates outside the tool or adjust returns to a post‑tax figure.