A Systematic Withdrawal Plan (SWP) is one of the most reliable ways to generate regular income from your mutual fund investments. Instead of withdrawing your entire invested amount at once, an SWP allows you to withdraw a fixed sum at regular intervals, usually every month.
This is especially useful for retirees, people seeking passive income, and anyone who wants steady cash flow while keeping their investment active and growing. To make this process simple and transparent, our SWP Calculator helps you estimate your earnings, remaining balance, and total withdrawals over time.
An SWP Calculator is an online financial planning tool that helps you determine how your investment will perform when you withdraw a fixed amount periodically. By entering your initial investment amount, expected rate of return, withdrawal amount, and time period, you can instantly see:
This helps you understand how long your funds may last and whether your withdrawal amount is sustainable.
Many people invest in mutual funds to grow wealth, but at some point they may want to convert that wealth into regular income. A Systematic Withdrawal Plan allows you to do exactly that. You continue to remain invested, which means your money keeps growing through compounding returns, while you simultaneously withdraw funds each month.
Some common uses include:
Unlike Fixed Deposits or pension plans, an SWP offers flexibility. You control the amount and frequency of withdrawals and can stop or modify the plan whenever you want.
The calculator works on a simple concept: your investment earns returns each month, and then your chosen withdrawal amount is deducted. This process repeats until the end of the selected investment period or until the balance becomes zero.
You need to input:
The expected return is converted into a monthly rate and applied to your balance before the withdrawal is deducted. Over time, your investment may grow, remain stable, or reduce based on how large your withdrawal amount is compared to the growth rate.
For example, if the returns you earn are greater than the monthly withdrawals, your fund value can continue increasing despite withdrawals. If the withdrawals exceed returns, the balance will gradually reduce.
An SWP Calculator helps you make informed financial decisions before starting a withdrawal plan. Key advantages include:
It also prevents emotional decision-making by showing realistic projections.
An SWP is ideal for:
It suits conservative and disciplined investors who value predictable income.
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