SWP Calculator

What is an SWP Calculator?

An SWP (Systematic Withdrawal Plan) calculator is a free online financial tool that helps investors estimate regular withdrawals from their mutual fund investments while keeping the remaining corpus invested. It helps in retirement planning, generating monthly income from investments, and managing post-retirement cash flow.

With the SWP calculator, you can determine:
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   Monthly withdrawals
   Remaining investment corpus after withdrawals
   Total amount withdrawn over time

Why Use an SWP Calculator?

Plan Retirement Income – Calculate how much you can withdraw monthly without exhausting your corpus.
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‍Generate Passive Income – Ideal for retirees or those needing regular income from investments.
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‍Tax-Efficient Withdrawals – SWP withdrawals may have lower tax implications compared to other income sources.
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‍Avoid Premature Corpus Depletion – Ensures your withdrawals don’t deplete your investment too soon.

How Does the SWP Calculator Work?

The SWP mutual fund calculator uses a mathematical formula to compute:

    1.Monthly Withdrawals – Fixed amount you withdraw regularly.
    2.Expected Rate of Return – Annual return on your investment.
    3.Investment Tenure – Duration for which withdrawals will continue.

SWP Calculation Formula

The formula used in the SWP return calculator is based on compounding and withdrawals:

‍Remaining Corpus = Initial Investment × (1 + r)^n - [Withdrawal × ((1 + r)^n - 1) / r]

Where:

             r = Monthly return rate (Annual Rate / 12)
           n = Number of months
           Withdrawal = Fixed monthly withdrawal amount

Example of SWP Calculation

Investment: ₹1,00,000 for a tenure of 1 year

Rate of return: 12%
SWP: ₹2,000 per month
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The table below shows the monthly withdrawals, remaining balance, and interest earned:

How to Use the SWP Calculator?

    Enter Initial Investment – Total lump sum amount invested.
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   Set Withdrawal Amount – Monthly/Quarterly/Annual withdrawal.
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   Expected Return Rate (%) – Estimated annual returns.
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   Investment Tenure (Years) – Duration of withdrawals.
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Benefits of Using an SWP Calculator

• Accurate Withdrawal Planning – Know exactly how much you can withdraw sustainably.
• Avoid Running Out of Money – Ensures your corpus lasts for the desired period.
• Compare Different Scenarios – Adjust withdrawal amounts & returns to optimize income.
• Tax Efficiency – SWP withdrawals may be taxed lower than fixed deposits.
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Who Should Use an SWP Calculator?

• Retirees needing monthly income from investments.
• Investors looking for passive income without selling assets.
• Financial Planners helping clients with withdrawal strategies.
• Early Retirees planning long-term financial independence.

FAQs for SWP