What is a systematic withdrawal plan?
A systematic withdrawal plan describes taking money out of an investment at regular intervals. Each withdrawal can include both invested capital and investment growth. It is not the same as guaranteed interest income. This calculator models a constant monthly withdrawal in BDT.
SWP calculation method
For end-of-month withdrawals, each month starts with the previous closing balance, earns the assumed monthly return, and then pays the withdrawal. A beginning-of-month withdrawal is deducted before that month’s growth. The final withdrawal is capped at the available balance.
For beginning-of-month withdrawals: end balance = max(0, start balance − withdrawal) × (1 + i). Estimated gain or loss = actual withdrawals + remaining balance − initial investment. The calculator stops paying once the balance is exhausted.
Worked SWP example
Start with ৳1,000,000, withdraw ৳10,000 at each month-end, and assume an 8% effective annual return for 10 years. Total withdrawals are ৳1,200,000 and the estimated remaining value is ৳357,682. At zero return, the same initial balance supports 100 full monthly withdrawals of ৳10,000.
How to test a withdrawal plan
- Enter the starting investment and desired monthly withdrawal.
- Choose an annual return and duration.
- Match the withdrawal timing to your intended schedule.
- Read the exhaustion message and inspect the projection table.
- Download the monthly schedule to compare alternative assumptions.
Why the investment may run out earlier
Investment returns do not arrive at a constant rate. Losses early in a withdrawal plan can reduce its lifetime even when a long-run average looks reasonable. Inflation, charges and taxes are excluded. Bangladesh investors should confirm actual redemption terms and costs with their provider; this is a planning calculation, not a product offer.
Frequently asked questions
Does an SWP guarantee monthly income?
No. Withdrawals can consume your original capital. The investment may be exhausted, and actual returns may differ from the assumption.
What if there is not enough money for a full withdrawal?
Only the available balance is withdrawn. The schedule stops at depletion and shows the month in which it occurs.
Does the calculator support negative returns?
Yes. You can enter an effective annual return between −99% and 100% to test loss scenarios.
Are taxes and fund fees included?
No. This model does not automatically apply taxes, exit loads or management fees. Use assumptions that reflect your circumstances.
Is the withdrawal schedule available?
Yes. The page shows selected projection rows and the CSV includes every calculated month.
Methodology: StockView calculation model 1.0. For planning and education; results depend on your inputs. No calculator inputs are submitted by this module.