SWP Calculator – Systematic Withdrawal Plan Online Tool
Use our free SWP calculator to estimate how much you can withdraw periodically from your mutual fund investment while preserving capital. Whether you're planning for retirement or managing surplus funds, this tool helps you make informed decisions.
Calculate Your Monthly SWP Amount
What Is an SWP Calculator?
An SWP calculator is a digital tool that helps investors determine the fixed or variable amount they can withdraw regularly from their mutual fund investments. It ensures you don’t run out of money too soon and maintains a balance between income generation and capital protection.
How Does the SWP Calculator Work?
This calculator uses the present value of annuity formula to compute periodic withdrawals:
Formula:
Withdrawal = P × r / (1 - (1 + r)^(-n))
Where:
P = Initial Investment
r = Periodic Interest Rate
n = Total Number of Withdrawals
Real-Life Example
If you invest ₹10,00,000 at 7% annual return and want monthly withdrawals for 10 years, the calculator will show:
- Monthly Withdrawal: ₹11,610
- Total Withdrawn: ₹13,93,200
- Remaining Corpus: ₹2,04,000
Advantages of Using SWP Over Lump-Sum Withdrawal
- Steady income stream
- Tax-efficient (only gains taxed)
- Better capital preservation
- Flexibility to adjust withdrawals
Frequently Asked Questions (FAQs)
What is an SWP calculator?
An SWP calculator helps estimate how much you can withdraw regularly from your mutual fund investment without depleting it too fast.
Is SWP taxable?
Only the capital gains part of each SWP installment is taxed. Equity funds offer tax benefits under indexation.
Can I change my SWP amount?
Yes, most mutual funds allow modification of the withdrawal amount or frequency.
How accurate is this SWP calculator?
This tool gives estimates based on assumed returns. Actual values may vary due to market fluctuations.
Is SWP better than dividend plans?
SWP offers more flexibility and tax efficiency compared to dividend payout plans.
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