SWP (Systematic Withdrawal Plan) Calculator 

A Systematic Withdrawal Plan Calculator (SWP Calculator) allows investors to plan and manage their withdrawals from their mutual fund investment while continuing to earn returns on the remaining balance. 

What is the SWP Calculator?

The SWP Calculator is an online financial tool that helps investors calculate the amount that they can withdraw on a systematic basis from their mutual fund investments and still have their corpus invested. The calculator provides investors with the correct estimates regarding the remaining value in their investments when withdrawals are made on a systematic basis. 

The calculator considers different elements such as the amount to invest, monthly withdrawals needed, expected rate of return, and investment period in providing an overall understanding of this entire investment process. It allows users to understand how their investments will work in the future with regard to monthly withdrawals, so that a proper decision can be made related to financial planning. 

How to Calculate SWP? 

You can calculate the future value of your Systematic Withdrawal Plan (SWP) investment by using the below the formula: 

A = PMT ((1+r/n)^nt – 1) / (r/n)) 

The SWP can be calculated using the formula: 

Where: 

• A = Future Value (total amount after all withdrawals) 
• PMT = Amount withdrawn periodically (SWP amount) 
• r = Expected annual return (as a decimal) 
• n = Number of times the interest is compounded per year 
• t = Total number of years 

Here is an example for you to understand better: 

Suppose you invest the amount of ₹10,00,000 for a year. Let’s assume that you decide to withdraw an amount of ₹10,000 per month. In such a case, your investment fund will be reduced by ₹10,000, and the amount left will remain invested. 

• PMT=10000 
• r=0.072 n=12 

t=5  
 

The total amount of your investment after all withdrawals after 5 years will be ₹7,00,284 with a total withdrawal amount of ₹6,00,000. 

How Does the BlinkX Systematic Withdrawal Plan Calculator Work? 

The BlinkX SWP mutual fund Calculator operates through a simple and efficient process: 

• Input Total Investment: Enter the lump sum amount you plan to invest in your mutual fund scheme. 
• Specify Withdrawal Amount: Provide the amount you wish to withdraw at regular intervals, typically monthly. 
• Set Expected Return Rate: Enter the anticipated annual rate of return from your mutual fund investment. 
• Define Time Period: Select the duration for which you want to continue the systematic withdrawals. 
• Instant Results: The calculator processes all inputs and immediately displays your total investment, total withdrawal amount, and the final value remaining after the specified period. 
• Visual Representation: The SWP return calculator presents results in an easy-to-understand format, helping you visualise how your investment will perform over time with regular withdrawals. 

How to Use the Systematic Withdrawal Plan Calculator? 

To calculate the maturity amount for SWP using the BlinkX SWP return calculator, you can use the below steps: 

• Step 1: Enter the amount you plan to invest.   
• Step 2: Provide your desired monthly withdrawal.  
• Step 3: Select the expected rate of return and time period. 

Lastly, your final amount after withdrawal will be displayed on the screen. 

What are the Factors on Which Systematic Withdrawal Plan Calculation Depends? 

The Systematic Withdrawal Plan calculation depends on a few key factors. The initial investment amount forms the base of the SWP, as a higher investment generally allows either larger withdrawals or a longer withdrawal period. The expected rate of return is also important, as higher returns help sustain regular withdrawals without reducing the invested amount too quickly. 

Another factor is the future value, which refers to the balance you wish to maintain at the end of the withdrawal period and directly affects how much can be withdrawn. Withdrawal frequency (monthly, quarterly, or annually) also matters, as more frequent withdrawals can shorten the investment’s lifespan. Lastly, the planned withdrawal duration influences the strategy, with longer periods requiring more careful withdrawal planning. 

Benefits of a SWP Calculator 

You can use the BlinkX Systematic Withdrawal Plan calculator to enjoy the benefits, such as: 

• Predictable Income: Using the SWP calculator, you can plan your monthly income as it helps you generate a regular income stream from SWP.  
    
• Financial Planning: The SWP calculator is a useful tool for planning your budget and managing your expenses effectively.  
    
• Flexibility: The Systematic Withdrawal Plan calculator provides you with the flexibility to plan according to your investment goals.