SWP (Systematic Withdrawal Plan) Calculator
Calculate your final balance and withdrawals from your mutual fund investments.
What is a Systematic Withdrawal Plan (SWP)?
SWP stands for systematic withdrawal plan. Under SWP, if you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw.
For example, let’s say you invested in HDFC Top 200 Fund an amount of ₹1 lakh for a year. Let’s assume that you decided to withdraw an amount of ₹10,000 per month. So every month, your investment in the fund will reduce by ₹10,000. The amount left every month after withdrawal will continue to remain invested.
Use the above SWP calculator to know how much you can withdraw from your lumpsum investments. You can also track and plan investments in ETF funds like Groww Nifty Next 50 ETF.
How can a SWP calculator assist you?
As per the Systematic Withdrawal Plan, an individual needs to invest a particular amount and withdraw a certain amount of the corpus invested each month. After withdrawal, the amount will be deducted from the investment while it continues to accumulate interest.
It is difficult to accurately calculate the monthly withdrawals and total matured sum. Our platform can help you with these complex calculations with its SWP calculator. This Systematic Withdrawal Plan calculator easily computes your matured sum as per your monthly withdrawals precisely. Calculators are simplifying the way people invest in mutual funds.
Example of Systematic Withdrawal Plan
As mentioned before, the SWP allows investors to generate both monthly revenue as well as an accumulated sum at the end of the maturity period. Refer to this investment and withdrawal schedule for an in-depth idea.
Here, an individual has invested Rs. 50,000 for a tenure of 1 year along with a systematic withdrawal of Rs. 1,000 per month. The interest rate stands at 10% p.a.
As such, the total return of investments after the end of the tenor stands at Rs. 4,565.
| Month | Balance at Begin | Withdrawal | Interest Earned |
|---|---|---|---|
| 1 | Rs. 50,000 | Rs. 1,000 | Rs. 408 |
| 2 | Rs. 49,408 | Rs. 1,000 | Rs. 403 |
| 3 | Rs. 48,812 | Rs. 1,000 | Rs. 398 |
| 4 | Rs. 48,210 | Rs. 1,000 | Rs. 393 |
| 5 | Rs. 47,604 | Rs. 1,000 | Rs. 388 |
| 6 | Rs. 46,992 | Rs. 1,000 | Rs. 383 |
| 7 | Rs. 46,375 | Rs. 1,000 | Rs. 378 |
| 8 | Rs. 45,753 | Rs. 1,000 | Rs. 373 |
| 9 | Rs. 45,126 | Rs. 1,000 | Rs. 368 |
| 10 | Rs. 44,494 | Rs. 1,000 | Rs. 362 |
| 11 | Rs. 43,856 | Rs. 1,000 | Rs. 357 |
| 12 | Rs. 43,214 | Rs. 1,000 | Rs. 352 |
How to use our SWP calculator?
The calculator is user-friendly and easy to use first time out. However, you need to ensure that all values are properly put in.
- You will find columns namely tenure (Time period), expected return, withdrawal per month, and total amount invested. Fill in the values as per your investment plan.
- Enter values and use the sliders to find a similar SWP returns chart and values as mentioned above.
How can a SWP calculator benefit you?
Retirees and senior citizens are among the most common investors in this scheme. Such individuals obviously require a fixed monthly financial input. An SWP can provide the same over and above the pension or even as an alternative. They can easily use the simple and intuitive systematic withdrawal plan calculator for numerous benefits.
- A Systematic Withdrawal Plan ensures monthly returns while generating RoI on the total investment. This calculator can help easily compute both accurately.
- It’s easy to set the amount which you wish to withdraw every month and calculate the amount on maturity accordingly.
- It is easily accessible online.
- This does not require any expertise to operate. Users need to just put variables in proper spaces and the output is ready in no time.
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FAQs
Can I choose the withdrawal amount or is it fixed?
Yes, you can choose any withdrawal amount you desire, subject to the minimum withdrawal limits set by the mutual fund house. It is completely flexible and you can even stop or change it later.
When to use SWP?
SWP is extremely beneficial when you need regular income streams, such as after retirement, to pay regular EMIs, or to fund a child's monthly education expenses from an accumulated corpus.
Can individuals other than retirees and senior citizens invest in the SWP?
Yes, individuals who are not senior citizens or retirees can also invest in the Systematic Withdrawal Plan (SWP). As per SWP, an individual can invest a lumpsum amount and withdraw a certain amount from that each month based on their personal financial requirements.