BacktestFolio · Glossary
SWR
In plain language
The percentage of wealth you can withdraw each year without risking running out of money within the chosen horizon. The well-known '4% rule' is an example of SWR for a 30-year horizon.
Technical definition
Sustainable Withdrawal Rate: the initial withdrawal rate that held without depleting capital in all (or almost all) historical scenarios analysed for the target duration.