Systematic Withdrawal Plan (SWP)

A Systematic Withdrawal Plan, commonly known as SWP, is a financial strategy that allows investors to receive a predetermined amount of money at regular intervals from their investments. SWP is often used as a means to create a consistent income stream, manage cash flow, or meet specific financial needs while keeping the invested capital intact.

How Does the SWP Calculator Work?

Our SWP Calculator is designed to simplify the process of planning and executing your systematic withdrawals. It requires the following inputs:

• Total Investment: The initial sum you've invested.
• Withdrawal per Month: The fixed amount you wish to withdraw regularly.
• Expected Return Rate (p.a.): The anticipated annual return on your investment.
• Time Period: The duration for which you plan to make withdrawals.

Based on these inputs, the calculator provides you with crucial information:

• Total Investment: The sum you initially invested.
• Total Withdrawal: The cumulative amount you will withdraw over the specified time period.
• Final Value: The remaining balance after taking out regular withdrawals, considering the expected return rate on your investment.

Example: Consider an individual investing ₹50,000 for one year while maintaining a systematic monthly withdrawal of ₹1,000, all within an investment yielding a 10% interest rate (per annum). In this scenario, the individual would make total withdrawals of ₹12,000 over the year, and the investment would stand at ₹42,566 at the end of the year, accounting for both the withdrawals and the earned interest.