BacktestFolio · Glossary
SWR
In plain language
The percentage of wealth you can set as an annual withdrawal without running out of money within the chosen horizon, on the past data or simulations you are looking at. The '4% rule' is the most cited example for roughly 30 years on US data; change the horizon, mix or costs and the number changes.
Technical definition
Sustainable Withdrawal Rate: the initial withdrawal rate that, across the historical or simulated scenarios analysed for the target duration, leaves capital undepleted at the horizon — in the BacktestFolio engine, including on the worst path in the sample.