Make smart withdrawal plans with our SWP calculator!

A SWP calculator determines the periodic withdrawals you can make from a mutual fund while maintaining a desired level of income or portfolio balance. It considers factors like the initial investment, desired withdrawal amount, investment duration, and expected rate of return.

Using these inputs, the calculator estimates the frequency and number of withdrawals needed to meet your financial goals. It helps you plan for regular income or manage your investments to meet specific financial needs, such as retirement.

The SWP calculator ensures a systematic and sustainable approach to fund withdrawals, optimizing financial security. Here is the formula for the SWP calculator.

Withdrawal Amount = (Initial Investment Amount × Withdrawal Rate) + (Fund Growth × Withdrawal Rate)

For example:

Priya invested Rs. 5,00,000 in an equity fund giving 8% returns p.a. (0.0067% per month) for an investment period of 12 months. She wants to make monthly withdrawals of Rs. 10,000 starting from the 1st month. Every month, Priya’s investment will be reduced by Rs. 10,000. What is left after the withdrawal will remain invested in the chosen fund.

Here is a table that shows Priya’s returns and withdrawals:

Month	Opening Balance	Interest Earned	Withdrawal	Closing Balance
1	500,000	2,958	10,000	492,958
2	492,958	2,920	10,000	485,878
3	485,878	2,881	10,000	478,759
4	478,759	2,843	10,000	471,602
5	471,602	2,804	10,000	464,406
6	464,406	2,765	10,000	457,170
7	457,170	2,727	10,000	449,894
8	449,894	2,688	10,000	442,580
9	442,580	2,650	10,000	435,230
10	464,406	2,765	10,000	457,170
11	457,170	2,727	10,000	449,894
12	420,413	2,534	10,000	412,947