Systematic Withdrawal Plan (SWP) is a facility that allows you to withdraw a fixed amount every month from a mutual fund. It is considered an excellent option to get a stable income after retirement. In this article, we will learn in detail about the SWP calculator, its benefits, uses and examples.
SWP Calculator
Plan your Systematic Withdrawal Strategy
Investment Parameters
Results & Analysis
Total Withdrawals
₹0
Total LTCG Tax
₹0
Final Balance
₹0
Duration
0 years
Sustainability
-
Yearly Breakdown
| Year | Starting Balance | Withdrawals | Interest Earned | Ending Balance |
|---|
Monthly/Periodic Breakdown
| Period | Date | Opening Balance | Interest | Withdrawal | LTCG Tax | Closing Balance |
|---|
What does the SWP calculator do?
The SWP calculator calculates what will be the value of the fund in the future if you invest a lump sum amount in a mutual fund scheme, and then withdraw a fixed amount every month.
Required Inputs:
Initial Investment Amount
Monthly Withdrawal Amount
Estimated Annual Return (%)
Investment Duration
Outputs:
Total Withdrawn Amount
Remaining Investment Amount
Potential Profit or Loss
Benefits of SWP
Regular income: A fixed amount is received every month.
Flexibility: You can decide the withdrawal amount and timing as per your requirement.
Tax benefits: Only capital gains are taxable in every withdrawal.
Capital protection: If the returns are good, the principal remains intact.
Example
If you have invested ₹10 lakh and want to withdraw ₹10,000 every month, the assumed annual return is 10%, and the tenure is 10 years, the SWP calculator will show that:
You withdrew a total of ₹12 lakh
You are left with more than ₹5 lakh at the end
SWP calculator is a must-have tool for those who want to make investments a source of income. It makes planning easier and gives better control over investments.
