SWP Calculator - Systematic Withdrawal Plan Calculator

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An SWP calculator helps you plan regular withdrawals from a mutual fund investment. It shows how long your money will last and the remaining balance after withdrawals, and it’s used to manage a steady income, like for retirement, while keeping your investment safe.

What Is the SWP Calculator?

The SWP Calculator helps users plan regular monthly withdrawals from their mutual fund investments while showing the remaining value of their investment over time. It’s an effective tool for estimating how long the investment will last and the type of steady income that can be expected, making it especially useful for retirement planning.

How Does the SWP Calculator Work?

The Systematic Withdrawal Plan (SWP) Calculator helps estimate regular cash flows from your mutual fund investment. It uses the formula:

FV = PMT × [(1 + r/n)^(nt) – 1] / (r/n)

Where,

  • FV = Future value of the investment
  • PMT = Withdrawal amount per period
  • = Expected annual rate of return
  • = Number of compounding periods per year
  • t = Investment period in years

Example Of SWP Calculator

Using the SWP Calculator is a very easy and straightforward process

  • Initial Investment: ₹1,20,000
  • Monthly Withdrawal (PMT): ₹10,000
  • Withdrawal Tenure: 12 months (1 year)
  • Expected Annual Return (r): 7% or 0.07
  • Compounding Frequency (n): 12 (monthly)

Each month, the interest is calculated on the remaining balance, and the withdrawal is deducted.

Month 1:

Opening Balance: ₹1,20,000
Interest (7% annually / 12 months): ₹700 (approx)
Total before withdrawal: ₹1,20,700
Withdrawal: ₹10,000
Closing Balance: ₹1,10,700

Month 2:

Opening Balance: ₹1,10,700
Interest: ₹645.75 (approx)
Total before withdrawal: ₹1,11,345.75
Withdrawal: ₹10,000
Closing Balance: ₹1,01,345.75

…and so on, until the end of 12 months. Following is a tabular calculation of the same.

Month

Starting Balance

Monthly Withdrawal

Interest Earned

Ending Balance

1

120000

10000

641.6666667

110641.6667

2

110641.6667

10000

587.0763889

101228.7431

3

101228.7431

10000

532.1676678

91760.91072

4

91760.91072

10000

476.9386459

82237.84937

5

82237.84937

10000

421.3874547

72659.23682

6

72659.23682

10000

365.5122148

63024.74904

7

63024.74904

10000

309.3110361

53334.06007

8

53334.06007

10000

252.7820171

43586.84209

9

43586.84209

10000

195.9232455

33782.76534

10

33782.76534

10000

138.7327978

23921.49814

11

23921.49814

10000

81.20873912

14002.70687

12

14002.70687

10000

23.34912343

4026.055998

How To Use the SWP Calculator?

The SWP Calculator helps you calculate the SWP mutual fund investment over a tenure:

  • Step 1: Fill in the total investment amount in mutual funds.
  • Step 2: Enter the withdrawal per month from the mutual fund scheme.
  • Step 3: Add the expected rate of return.
  • Step 4: Enter the investment tenure.
  • Step 5: The SWP Calculator will display the total investment, total withdrawal, total interest earned, and the final value of the investment.

Benefits Of the SWP Calculator

Below are the benefits of using the  SWP calculator: 

  • Provides accurate estimates of monthly withdrawals from mutual fund investments.
  • Shows how long your investment will last based on the withdrawal amount and tenure.
  • Calculates interest earned during the withdrawal period.
  • Displays the remaining corpus after each withdrawal.
  • Helps plan a steady post-retirement income or regular cash flow.
  • Easy to use with simple input fields like investment amount, duration, and expected return.
  • Offers a clear breakup of principal vs. earnings over time.

Conclusion

The SWP Calculator offers clear insights into monthly withdrawal schedules and investment growth. It helps you plan your investment with confidence and clarity. By managing recurring financial needs, this calculator ensures your money aligns with your goals, bringing structure, stability, and peace of mind to your financial journey.

Frequently Asked Questions

How does the ClearTax SWP Calculator help you?

The ClearTax SWP Calculator shows you the monthly withdrawals from the SWP. You can calculate the regular income you want every month. Any surplus amounts may be invested depending on your financial goals and risk tolerance. It also shows you the final value of your investment. You may use the ClearTax SWP Calculator, to calculate the amount you can withdraw from mutual funds and generate a second income.

Is the ClearTax SWP Calculator easy to use?

Yes, the ClearTax SWP Calculator is a handy easy-to-use utility tool. You can calculate the amount you want to withdraw every month from the mutual fund scheme. It may be used from the comfort of your home or anywhere.

How does the ClearTax SWP Calculator help you to save taxes?

The SWP is a tax-efficient tool for retirees to earn a regular income. It may also be used for multiple purposes such as children’s higher education or a foreign vacation. The ClearTax SWP Calculator helps you to enjoy the tax benefit on long-term capital gains above Rs 1 lakh in a financial year, for equity-oriented funds.

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