SWP Calculator 2024

What is SWP?

SWP or The Systematic Withdrawal Plan offers investors a regular income at an interval you prefer from the investments made by you. You may withdraw either a fixed or variable amount on a pre-decided date every month or quarter as you prefer.

For example, if you invest in mutual fund for Rs. 1 Lakh for a year. Let’s assume you withdraw a monthly amount of Rs. 9000 every month, so your investment will reduce by Rs. 9000 and the amount remaining will continue to be invested.

What is a SWP Calculator?

A SWP calculator is an online tool that helps you estimate the potential income you can generate from your mutual fund investments through SWPs. While it may be difficult to manually calculate the monthly withdrawals and matured sum and maintain, Fincover can easily help you deal with this using our user-friendly SWP calculator.

Just mentioned your initial investment amount, desired withdrawal amount, frequency of withdrawals, and the expected rate of return.

How to use a SWP Calculator

Follow the below mentioned steps to make SWP calculator work for you

• Fill in the amount invested in Mutual Funds
• Enter the withdrawal per month from MF Scheme
• Fill in the expected rate of return
• Tenure of the investment
• The Fincover SWP Calculator will show the total investment, total withdrawal, interest earned, and the final value of your investment

How Does a SWP Calculator Work?

SWP calculator simulates your monthly withdrawals from your mutual fund investments

A SWP calculator works on this formula mentioned below:

F = MP ((1+r/n)^nt – 1) / (r/n))

• F – Future value of the investment
• MP – Amount withdrawn for each period
• N – Number of Compounds in a period
• t- Number of periods the money is invested in

For example, if you are investing Rs. 120000 for a year, and you are withdrawing Rs. 10000 every month. The expected annual interest rate is 10%. The withdrawal tenure here is 12 months or 1 year. If you enter these details in the SWP calculator, you will get the result as follows

Total Investment  – Rs. 120000

Total Withdrawal – Rs. 120000 (12*10000)

Final value – Rs. 6,595

Benefits of Using a SWP Calculator:

• Financial Planning: Helps you plan your financial goals and estimate the income that you can earn from the investments
• Compare various SWPs: This calculator enables to compare different SWP scenarios and choose the best SWP that suits your financial goals
• Informed Decision Making: Provides valuable insights that help you make informed decisions about your SWP investments
• Easy to use: The interface is simple and easy to use and provides accurate estimates of your returns

FAQ on SWP Calculator

1. Does the SWP Calculator takes market movements into account?

No, it uses fixed returns. Actual returns may change due to market volatility.

2. Is the SWP calculator free to use?

Yes it is absolutely free to use.

3. Can I Use the SWP calculator for different Mutual Funds?

Calculator can be used for all types of mutual funds which comes with SWP option.

4. Are the results given by SWP calculator?

The SWP calculator provides returns based on the input you provide and the assumed rate of return. The actual return might vary based on market volatility.

5. Can I rely solely on SWP calculator for investment decisions?

A SWP calculator helps you calculate the approximate returns; the actual returns are impacted by market movements. It is advised to consult with Financial experts before proceeding with Investment. At Fincover, we have expert financial experts who have years of experience in assisting people.