Withdrawal per month
Expected Returns (P.a)
Time Period (Years)
Systematic Withdrawal Plan (SWP) is a smart plan that allows you to redeem units and withdraw money from a mutual fund scheme in a phased manner, at a frequency of your choice. This could be ideal for investors who want a regular cash flow. Usually, the intervals are monthly, quarterly, or annual. However, based on the type of fund and the asset management company (AMC) you have chosen, you may also be able to customise it. If you want to get an estimate of the future value of your investment, based on your withdrawals, using an SWP calculator is recommended.
An SWP mutual fund calculator is a smart way to calculate the future value of your mutual fund and your expected returns based on the withdrawals you make from the fund at your chosen frequency. It saves you time, manual effort, and provides an error-free result. It can help you build a corpus, consistent with your long-term financial goals, in a manner through which you can continue to enjoy a regular cash flow, while also maximising the returns potential of your investment.
Let us now take a look at the mathematical formula based on which an SWP calculator operates:
Formula Used by an Systematic Withdrawal Plan Calculator
This is how you can calculate the final value of your investment if you plan to start an SWP:
A = P ((1+r/n)^nt-1)/(r/n)
A = future value of your investment
P = the amount withdrawn at the end of each period
r = rate of return per year
n = number of times compounding is done per period
t= the tenure
For example, if you invest ₹2 Lakh in a mutual fund for 5 year at an expected rate of interest of 12% p.a. and decide to withdraw ₹500 from the fund every month via the SWP route, the final value of your investment will be ₹30,000* and your total earnings will be ₹3,12,298*.
*Based on the results of the Navi SWP calculator
To understand how a systematic investment plan calculator works, let us consider the following example:
|Month||Beginning Balance||Interest Earned||Withdrawal||Ending Balance|
The SWP calculator is a tool that helps you plan your withdrawal from a mutual fund scheme or investment portfolio. It also helps you meet and stay on course with your long-term financial and wealth creation goals.
Follow the steps below to calculate your withdrawals with Navi’s SWP calculator:
An SWP calculator eliminates the need to manually calculate the final value of your investment, provided you have chosen or want to choose the SWP route. Here are some ways in which it can help:
The benefits of SWPs are: