Calculate the benefits of your investment with regular withdrawals, remaining amount and expected return on the investment.

SWP stands for Systematic Withdrawal Plan. SWP Calculator is a financial tool. It is used to calculate the estimated amount of output of mutual fund investments over a specific period. You can specify these time periods as you wish. It should be kept in mind that withdrawals are made on a regular basis. These intervals can be monthly, annually, quarterly, or semiannual. An SWP Calculator not only tells you the regular withdrawal amount but also the remaining balance, tenure, and expected return on the investment. 

The SWP Calculator consists of a formula box. You have to enter the total investment amount, withdrawal per month or the time period you select, expected annual rate of return and tenure of the investment. The SWP Calculator gives you an estimate of the future value of your mutual fund investment.

The values provided in the table are generated by a Systematic Withdrawal Plan (SWP) calculator. An SWP allows you to withdraw a fixed amount regularly while the remaining investment continues to earn interest or returns. The interest earned each month, displayed in the table, corresponds to the balance at the start of the month and adjusts as withdrawals are made. This systematic approach ensures consistency while maximizing the potential of your investment growth over time.

Many mutual fund companies offer this facility called SWP (Systematic Withdrawal Plan). SWP is a way to withdraw a specific/fixed amount of money regularly from your mutual fund investment. For example, if you have an investment in a mutual fund, you can choose to withdraw a certain amount of money every month from your investment. In this way, you can receive a steady income. 

SWP is designed for individuals who want to earn income from their investments without actively engaging. This plan is especially beneficial for people looking for a steady income, such as retirees. Stay-at-home individuals invest in mutual funds to grow their wealth over time. It's a convenient way to ensure that your investment is working for you and providing you with a monthly income.

Example: Suppose you invest ₹1 lakh in a mutual fund and set up a withdrawal of ₹10,000 every month. Each month, ₹10,000 is taken out of your investment, but your remaining ₹90,000 and the returns it generates remain invested in the fund. In this way, you receive regular monthly income while still benefiting from any growth in your investment.

Mutual funds are a type of investment where many people invest in a collection of stocks, bonds or units. A professional manager oversees these funds. He makes decisions based on the fund's goals of where to invest the money. In return, investors own a small portion of different investments. In the same way if stocks, bonds and units are being sold at a good price, all the investors would get a share.

When you invest in a mutual fund, you don't withdraw all your money at once. You make a plan to take out a specific amount at regular intervals. The mutual fund doesn't sell your investment at once. It sells a portion of your investment so that they can give you the money you've requested

I'll break it this with an example:
If you have ₹1 lakh in your mutual fund account and want to withdraw ₹10,000 monthly, here's how it would typically work.

You have ₹1,00,000 in your mutual fund account and suppose at the time of investment, the NAV of the mutual fund is ₹100 per unit. So for ₹1,00,000, you will be able to buy 1000 units. 
You have ₹1,00,000 in your mutual fund account and suppose NAV (Net Asset Value) of the mutual fund is ₹100 per unit at the time of investment.

• Units bought = ₹1,00,000 / ₹100 = 1,000 units.

1. Monthly withdrawal (₹10,000)
   • The amount of units you need to sell for this withdrawal depends on the current NAV (Net Asset Value) of the mutual fund.
     

If the NAV remains at ₹100 per unit
If there is no fluctuation in the price per unit, which means NAV remains the same, then you have to sell 10000/100 = 100 units, and the remaining units will be 900.

1. So, every month, you would sell 100 units to withdraw ₹10,000.
   Remaining units after 1st month = 1,000 units - 100 units = 900 units.After the 2nd month: 900 units - 100 units = 800 units, and so on.

2. In this case, your 1,000 units will last for 10 months (since you're selling 100 units each month).

For example, in the next month the price per unit increases to 10, and it becomes 110. Then, for a withdrawal of 10,000, you have to sell 10000/110= 90.91 units
Remaining units will be 900-90.91= 810 almost but if the NAV value drops then you may have to sell the units at a low price and units will end up soon.
To withdraw ₹10,000,  now you have to sell fewer units because the price of a unit has increased. You have 1000 units and you can sell one unit for 110. for 10,000 you would sell 10,000/110= 90.91 units

This means you sell approximately 91 units instead of the 100 units required previously.In this case, your 1,000 units will last for approximately 11 months (since you're selling slightly less than 100 units each month).
It is very obvious that change in the NAV affects the tenure of your investment and remaining balance. SWP helps you to calculate your future returns. SWP calculator gives you this clear estimated calculation while keeping an eye on rate of return, tenure and amount of regular withdrawal. In this way you can make decisions about your mutual funds investments and plan a regular withdrawal in the future with the help of this reliable calculator.

NAV or net asset value is the price of one unit of a mutual fund. You calculate it by dividing the total value of the fund's assets- liabilities/ by the total number of units. NAV (Net Asset Value) changes on the basis of market value of the fund's investment and it depicts its performance.
NAV = (Total value of assets - Total value of liabilities) / Number of units

For calculation of number of units to be sold for monthly withdrawal, use the following formula:
Units to be sold = Monthly Withdrawal Amount / NAV (Net Asset Value)
For example, if your monthly withdrawal amount is ₹10,000 and current NAV of your mutual fund is ₹100 per unit, then you need to sell 100 units to withdraw ₹10,000. However, if NAV increases to ₹110 per unit in the next month, then you only need to sell approximately 91 units (₹10,000 / ₹110 = 90.91) to get the same amount. This formula can help you plan and adjust your SWP.

SWP is a powerful tool that simplifies your systematic withdrawal planning. You have to input the key details such as

• Initial investment
• Monthly withdrawal
• Withdrawal tenure
• Expected annual returns

And the calculator will help you to understand how long you can get monthly withdrawal and what will be the final amount.

The calculator uses a mathematical formula:
A = PMT ((1 + r/n)^(nt) – 1) / (r/n)
Where:

• A = Future Value of the Investment
• PMT = Payment amount for each period (regular interval like monthly)
• n = Number of compounding periods per year (for example, number of months in a year)
• t = Total number of years the money is being invested
• r = Annual interest rate (expected)

Suppose you want to compute SWP for an initial investment of ₹1,20,000. You want to withdraw ₹10,000  monthly over 12 months. Assuming an expected annual return of 7%.The formula is: A = PMT ((1 + r/n)^(nt) – 1) / (r/n)
Initial Data:

• PMT = ₹10,000 (monthly withdrawal)
• r = 7% = 7/100 annual return = 0.07
• n = 12 (number of months per year, monthly)
• t = 1 year (12 months)

1. Monthly Interest Rate (r/n):
   • r/n = 0.07 / 12 = 0.005833
2. Total Compounding Periods (nt):
   • nt = 12 × 1 = 12
3. Future Value (A):
   • A = ₹10,000 × ((1 + 0.005833)^12 – 1) / 0.005833
   • A = ₹10,000 × (1.0744 – 1) / 0.005833
   • A = ₹10,000 × 0.0744 / 0.005833
   • A = ₹10,000 × 12.76
   • A = ₹1,27,600

It means after monthly withdrawals and 7% annual returns, balance at the end of the year will be approximately ₹1,27,600. The calculator computes this easily. It ensures you can plan your finances with precision. It helps you visualize the impact of withdrawals and  compounding returns. It saves time and avoids manual errors.

To use the SWP calculator, provide the following details:

• Initial investment amount
• Investment duration
• Expected interest rate
• Monthly withdrawal amount

The calculator will then generate the estimated:

• Total investment value
• Cumulative interest earned
• Total withdrawals
• Final investment value.

SWP (Systematic Withdrawal Plan) Calculator is a small tool. It's easy to use. You can manage your investments in a better way with the help of SWP Calculator. That's why it is a smart choice for Indian investors.

With the SWP calculator, you can calculate the estimated amount of withdrawal and frequency of withdrawal. It helps you to meet your financial goals easily.

If you are worried to know how long your money will last? By using the calculator you can get a clear picture. It helps you make sensible decisions and achieve goals.

When markets drop, you may panic easily. With the help of a SWP calculator, you can devise a steady plan and try to avoid withdrawals at critical situations.

With the help of the calculator, you can take out the amount based on your needs. You can withdraw the money while keeping in mind the remaining amount as investment will grow.

Systematic withdrawal plan, gives you regular income. That's why it is a great option for retirees or persons who need extra income monthly. This monthly income can be calculated by a SWP calculator.

SWP is tax-friendly. Only the profit part of your withdrawal is taxable. Taxes on mutual funds in India depend on how long you've held them. Gains above ₹1 lakh on equity funds are taxed at 10% (long-term). Short-term gains are taxed at 15%. SWP calculator helps you calculate and manage taxes.

You can fluctuate the amount of money withdrawal according to your needs. For example, if you are going to buy a house for your children, you can take out more. You can also reinvest your spare unspent money again.

While you keep on taking out money at regular intervals. If the market price is high at the same time your investment keeps on growing. Hence, extra return will balance out the withdrawals.

SWP allows you to decide the amount of withdrawal. Rates can be flexible or fixed. In this way, you can adjust your plan accordingly.

SWP protects you from market ups and downs through rupee cost averaging. You withdraw at regular intervals, which helps manage risks from market volatility.

SWP has the ability to protect you from the ups and downs of the market by averaging the cost of rupee. You can withdraw at regular intervals. Withdrawal at regular intervals help you to manage risks of market volatility.
The SWP Calculator makes handling your money simple and stress-free. It ensures you get the most from your investment without worries.

Let’s take a look at this example to understand SWP.
Mrs. Daniel wants to make Systematic Withdrawal from her mutual fund investment. She has 15000 units in her mutual fund investment. She has a plan of withdrawal of rs. 5000 monthly.
Suppose the NAV at the time of 1st withdrawal is Rs.10.
For the withdrawal of 5000 Rs. she needs to sell 5000/10= 500 units
Remaining units in her scheme will be 14500 and suppose at the time of 2nd withdrawal NAV shifted to Rs. 15. Units to be sold at this time would be 5000/15= 333

Now the number of units left in the scheme are 15000 - 833= ………..
It's clear from the example that NAV at the time of withdrawal impacts the number of units in the scheme greatly. If
NAV > number of units to be sold
NAV< number of units to be sold
You can calculate the final value manually but for authentic and reliable results, use the SWP Calculator.

An SWP (Systematic Withdrawal Plan) calculator helps you determine the returns on your mutual fund investment by simulating the process of withdrawing a fixed amount periodically.

SWP calculator asks you for the information like investment and withdrawal amount (monthly, quarterly or annually). On the basis of these values, SWP Calculator figures out how much you will get over time.

You can write the expected interest rate which is also called rate of return. This rate of return is based on historical performance. SWP Calculator uses this rate to estimate the growth of investment over time.

SWP Calculator with the given interest rate on the remaining balance simulates the regular withdrawal. It calculates the growth of investment and shows how worthy our remaining fund is.

As you withdraw money, the calculator checks  the interest earned on the remaining balance.In this way, you can see how the interest accumulates. It contributes to your overall returns, even as you continue to make withdrawals.

By the end of the specified period, the calculator shows you the final value of your investment. Taking into consideration the withdrawals and the compounding effect of the interest, SWP Calculator helps you understand how long your money will last and what your final returns will be.

In summary, the SWP calculator gives a clear picture of how your mutual fund investment will perform over time. It shows you the effect of regular withdrawals on both your principal and the returns generated. It helps you plan better, ensuring that your withdrawals are sustainable and that you make the most of your investment.

It is the remaining amount in mutual fund investment after all the scheduled withdrawals. It also includes the return earned on the investments. It shows the worth of investments at the end of the withdrawal period.

SWP is a great way to get a regular income after retirement. It's essential to assess the future value of your corpus to make a good financial plan. To calculate this amount, you can use an SWP calculator.

In India, some rules that SEBI and Income Tax Department have given to follow for SWP transactions.

• SEBI looks at mutual funds and makes sure that they follow the law.
• It also protects the interests of investors.
• In SWP, mutual funds must have to deliver all the cost like fee and charges to the investors directly.

• SWP withdrawals are taxed under capital gains tax.
• After gaining above ₹1 lakh within one year, you have to pay tax of 10% (LTCG)
• If you keep units less than one year, tax rate will be 15% (STCG)

Mutual funds charge you if you withdraw within a year but SWP does not have an exit load that makes it attractive

SWP is a smart withdrawal strategy. It has benefits like regular income and tax savings. To get its advantages, understand the rules and use SWP wisely.

SWP vs. Lump Sum Investment	If you invest a large amount at any platform at once, you can say Lump Sum invest. There can be a risk of a down market and your return can be low. But SWP gives you the opportunity to withdraw over time. It reduces the risk of withdrawal if the market is declining.
SWP vs. SIP	SIP is built to grow your wealth with the passage of time. You have to invest in it regularly. SWP is for withdrawing regular income from the accumulated amount. Both are opposite. SIP works for saving and growing the wealth of young investors but SWP is for the people who want regular income  from their investments such as retirees