Systematic Withdrawal Plan (SWP) Calculator
Investment Amount: ₹
Monthly Withdrawal: ₹
Total Withdrawn Amount: ₹
SWP (Systematic Withdrawal Plan) Calculator
SWP stands for systematic withdrawal plan. Under SWP, if you invest a 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 ₹1 lakh in HDFC Top 200 Fund for a year. Assume that you decided to withdraw ₹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.
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 the total matured sum. FinanceResources.in 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 and 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 ₹50,000 for a tenure of 1 year along with a systematic withdrawal of ₹1,000 per month. The interest rate stands at 10%.
- Initial Investment: ₹50,000
- Monthly Withdrawal: ₹1,000
- After 1 month: ₹49,408
- After 2 months: ₹48,812
- After 3 months: ₹48,210
- After 4 months: ₹47,604
- After 5 months: ₹46,992
- After 6 months: ₹46,375
- After 7 months: ₹45,753
- After 8 months: ₹45,126
- After 9 months: ₹44,494
- After 10 months: ₹43,856
- After 11 months: ₹43,214
- After 12 months: ₹42,652
How to use SWP calculator?
The calculator is user-friendly and easy to use for the first time. However, you need to ensure that all values are properly put in.
- Fill in the values for tenure, expected return, and amount invested as per your investment plan.
- Enter values and calculate to find a similar SWP returns chart 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 FinanceResources.in’s 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 the proper space, and output is ready in no time.
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FAQs
In a Systematic Withdrawal Plan (SWP), investors typically have the flexibility to choose the withdrawal amount. Unlike annuities or pension plans where the withdrawal amount may be fixed, SWPs allow investors to decide how much they want to withdraw at regular intervals, subject to the terms and conditions of the investment scheme.
Systematic Withdrawal Plans (SWPs) are commonly used by investors who wish to generate a regular income stream from their investments while keeping their capital invested. SWPs can be beneficial for retirees or individuals looking to supplement their income during retirement. They can also be used to manage cash flows, meet periodic expenses, or rebalance investment portfolios.
Yes, individuals who are not retirees can also invest in a Systematic Withdrawal Plan (SWP). SWPs are not limited to retirees; anyone with investments in mutual funds or other investment products offering SWP facilities can opt for regular withdrawals as per their financial needs and objectives. SWPs can be used by individuals of any age to manage their cash flows or create a regular income stream from their investments.