SWP Calculator

Understanding Systematic Withdrawal Plans (SWP)

A Systematic Withdrawal Plan (SWP) allows investors to manage their mutual fund investments efficiently. By investing a lump sum amount, you can set a fixed withdrawal amount at regular intervals.

For instance, imagine investing ₹1 lakh in HDFC Top 200 Fund for a year and deciding to withdraw ₹10,000 monthly. Each month, your fund balance decreases by ₹10,000 while the remaining amount continues to earn interest.

Benefits of Using an SWP Calculator

A SWP calculator simplifies the complex task of calculating monthly withdrawals and the final maturity amount. It accurately computes your matured sum based on your withdrawal preferences.

Example of a Systematic Withdrawal Plan

Suppose you invest Rs. 50,000 for a year with a monthly withdrawal of Rs. 1,000 at a 10% interest rate. Here's how your investment might perform:

Month	Balance at Begin	Withdrawal	Interest Earned
1	Rs. 50,000	Rs. 1,000	Rs. 408
2	Rs. 49,408	Rs. 1,000	Rs. 403
3	Rs. 48,812	Rs. 1,000	Rs. 398
4	Rs. 48,210	Rs. 1,000	Rs. 393
5	Rs. 47,604	Rs. 1,000	Rs. 388
6	Rs. 46,992	Rs. 1,000	Rs. 383
7	Rs. 46,375	Rs. 1,000	Rs. 378
8	Rs. 45,753	Rs. 1,000	Rs. 373
9	Rs. 45,126	Rs. 1,000	Rs. 368
10	Rs. 44,494	Rs. 1,000	Rs. 362
11	Rs. 43,856	Rs. 1,000	Rs. 357
12	Rs. 43,214	Rs. 1,000	Rs. 352

How to Use an SWP Calculator

Using an SWP calculator is straightforward:

• Enter the investment tenure, expected return rate, and initial amount invested.
• The calculator generates a withdrawal schedule similar to the example above.

Advantages of Using an SWP Calculator

SWP calculators are particularly beneficial for retirees and senior citizens who require a fixed monthly income. Key advantages include:

• Ensuring steady monthly returns with ROI on investments.
• Simple operation with no specialized knowledge required.
• Accessible online for convenience.