| Month | Opening Balance (₹) | Withdrawal (₹) | Interest (₹) | Closing Balance (₹) |
|---|
Are you looking for an SWP calculator to plan regular withdrawals from your mutual fund investments?
This tool helps you estimate your monthly income and track your remaining investment balance easily.
SWP (Systematic Withdrawal Plan) is a facility offered by mutual funds that allows investors to withdraw a fixed amount at regular intervals—typically monthly—from their investments. It is an effective way to generate a steady income while keeping the remaining corpus invested in the market.
With each withdrawal, only the required amount is redeemed, while the remaining balance stays invested and continues to potentially generate market-linked returns.
Calculating the maturity value of a Systematic Withdrawal Plan (SWP) manually can be complex and time-consuming. This is where an SWP Calculator proves useful.
It helps estimate the value of your investment at maturity, even after withdrawing a fixed amount at regular intervals.
SWP is a popular and effective option for generating post-retirement income, but it can also suit anyone looking to earn a steady monthly income from surplus funds invested in mutual funds.
Table of Contents
What Is A SWP Calculator
An SWP Calculator is an online tool that helps estimate the maturity value of your investment after making regular withdrawals of a fixed amount.
By entering the initial investment amount, withdrawal tenure, and the expected rate of return, the calculator instantly shows the remaining value of your investment at the end of the period.
How Does A SWP Calculator Work?
The SWP Calculator works on the following formula.
FV = PMT × [(1 + r/n)^(nt) – 1] / (r/n)
- FV = Future value of the investment
- PMT = Withdrawal amount per period
- r = Expected annual rate of return
- n = Number of compounding periods per year
- t = Investment period in years
How To Use the SWP Calculator?
To use this SWP calculator, you need to enter a few details.
- The invested amount
- Tenure in years
- Expected rate of interest
- Monthly withdrawal amount
Based on your inputs, the calculator will display the final value at maturity. It will also show when all your invested money will be exhausted if you withdraw the specified amount every month.
The calculator will also show a growth table for your investment so that you know how your investment returns are growing every year.
Example Of SWP Calculator
For example, an individual has invested a sum of Rs 200000 for a period of 1 year with an expected rate of interest of 10%. If he/she intends to withdraw Rs 10000 every month. Here is what the maturity value would be after every year.
FV= 10000X[(1+10/12)^(12*1)-1]/(10/12)) = 95287
Please note that in SWP, interests are calculated on a monthly compounding basis. Means that after every month, the interest is calculated on the remaining balance, including the interest earned in the previous month.
Benefits Of The SWP Calculator
- Get the maturity value instantly, calculated accurately based on the expected rate of return you provide.
- Estimate the SWP amount you can withdraw while keeping your investment intact for a chosen number of years.
- Helps you plan post-retirement finances with greater clarity and confidence.
- Displays a clear, easy-to-understand year-wise table showing how your investment evolves.
- The calculator is free to use with no usage limits.
Conclusion: Systemic Withdrawal Plan Calculator
An SWP Calculator is a powerful tool that helps you plan your finances more accurately by estimating an SWP amount aligned with your monthly income needs. Without a structured calculation, you may rely on assumptions, which could lead to under-spending or over-spending over time.
By using this tool, you get a clear forecast of your financial position across the investment period, enabling better planning, sustainable withdrawals, and balanced long-term financial growth.
FAQ | SWP Calculator
Who Can Opt For SWP?
SWP is most suitable for individuals’ post-retirement as the monthly amount helps them to meet their monthly financial requirements. However, any individual can opt for SWP if they have surplus money to invest.
Is The SWP Amount Fixed?
The SWP amount is not fixed. You can choose any amount you want based on what amount you have invested.
Can I Opt For SWP With Any Mutual Fund?
Ideally, yes, for most mutual funds where you invest a lump sum amount. If you invest through SIP, you may need to wait for a few years before you start SWP; otherwise, that won’t yield any financial benefit.
