Systematic Withdrawal Plan Calculator
The SWP (Systematic Withdrawal Plan) Calculator is an online tool that shows you the monthly withdrawals from your mutual fund investments. It offers the total value of the mutual fund investment after the Withdrawal. You can get a regular income in retirement through the systematic withdrawal plan.
What is a systematic withdrawal plan?
SWP (Systematic Withdrawal Plan) is a feature offered by mutual funds where the investor can withdraw fixed money from their mutual fund investment at regular intervals, like monthly or quarterly. Here's how it works: The investor selects a mutual fund and opens an account with the fund house.
How can an SWP calculator help us?
An SWP (systematic withdrawal plan) calculator is an online tool that instantly calculates the final value. You should enter the necessary information, such as the total investments, the monthly withdrawal amount, the expected return rate and the time.
How does an SWP calculator work?
A systematic withdrawal plan (SWP) calculator uses the following formula.
- Total investment amount
- Monthly Withdrawal
- Annual return rate (expected)
- Investment tenure
SWP Calculation Part:
A = PMT ((1+r/n)^nt – 1) / (r/n))
Here,
A :Future value of an investment.
PMT : It is a payment per period in terms of finance.
r:Annual rate of return.
n:Compound numbers in a given period
t :number of periods an investment amount.
Example
A person invests Rs 60,000 for one year and makes a monthly withdrawal of Rs 1000. Furthermore, the expected rate of return is 10%.
After monthly withdrawals, the total amount at the end of the year is Rs 53,459. The manual calculation becomes difficult and limits the scope for accuracy. Finally, the SWP (Systematic Withdrawal Plan) calculator produces accurate results in seconds.
SWP (Systematic Withdrawal Plan) calculator will calculate and shows the following results:
- Total Investment:Total amount invested in the mutual fund (same as above)
- Complete Withdrawal:The total amount that you would have withdrawn during the SWP period
- Final Value:Final value of your investment after subtracting the total withdrawal amount
How to use an SWP calculator?
SWP calculator is easy to use, especially for beginners.
- Firstly, enter your total amount of investment. .
- After entering the amount, fill in a withdrawal value you want to make per month or quarterly.
- Provide an expected rate of return in percentage.
- Submit the tenure of your investment.
- Within seconds you can view the entire final value.
Benefits of SWP (Systematic Withdrawal Plan) Calculator
- You can use the SWP Calculator to calculate the monthly income from mutual fund investments.
- Try the SWP Calculator for different withdrawal amounts and calculate the maturity amount.
- The calculator helps you identify the best monthly withdrawals from mutual funds.
- The SWP Calculator lets you determine the SWP surplus, which you may invest in other financial instruments.
FAQ'S
What is the SWP calculator?
Using the SWP calculator, you can see monthly withdrawals from your mutual funds. It displays the total value of your mutual fund investment after Withdrawal.
What is the minimum investment for SWP?
Minimum balance: To start an SWP account, you must have a minimum balance of Rs. 25,000 in your mutual fund. Though this is a lump sum amount you must pay before starting the plan, this money will not be locked-in, and you can keep withdrawing it in parts over a while at regular intervals.
Is the SWP Calculator easy to use?
Yes, the SWP Calculator is a handy, easy-to-use utility tool. You can calculate the monthly amount you want to withdraw from the mutual fund scheme. It may use from the comfort of your home or anywhere.
When to use an SWP calculator?
Retired persons can benefit from this calculator when they need a fixed-income plan.