An SWP Calculator is a financial tool that helps you estimate the monthly or periodic withdrawals and the remaining balance from your mutual fund investment over time under a Systematic Withdrawal Plan (SWP).
What is SWP?
SWP allows investors to withdraw a fixed amount regularly (monthly, quarterly, etc.) from their mutual fund while the remaining investment continues to grow.
How It Works:
You input:
Total investment amount
Monthly withdrawal amount
Expected annual return rate
Withdrawal duration
The calculator shows:
Balance after each withdrawal
Interest earned
Final remaining amount or when funds will be exhausted
Benefits:
Helps in retirement planning or creating a regular income stream.
Useful for managing cash flow needs without redeeming the entire investment.
Visualizes the impact of market returns on your withdrawals.