An interest rate swap whereby the notional principal amount (NPA) grows over its time to expiration. Such a swap is particularly fitting in a case where a fixed-rate payer has expanding working capital requirements.

The drawdown swap has a wide variety of names, including: appreciating swap, accumulation swap, escalating swap, escalating principal swap, construction loan swap, staged drawdown swap, accreting swap, set-up swap, and accreting principal swap.