SWP (Systematic Withdrawal Plan) Calculator

What is the SWP Calculator?

A Systematic Withdrawal Plan (SWP) Calculator is a financial tool that helps you determine the future value of investment from investing at regular intervals while maintaining a minimum balance.

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• PMT = Amount withdrawn periodically (SWP amount)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?

You can use the blinkX Systematic Withdrawal Plan calculator by entering the total investment amount, expected rate of return, the number of withdrawals, and desired future value in the provided fields. Providing these details will help you to know the amount to be withdrawn at regular intervals of time without depleting the investment prematurely.

How to Use the Systematic Withdrawal Plan Calculator?

To calculate the maturity amount for SWP using the blinkX SWP 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 key factors that impact the Systematic Withdrawal Plan calculation are:

• Total Investment Amount: The total amount you invest for your Systematic Withdrawal Plan. Depending on the amount you invest, you can have higher withdrawals.
• Rate of Return: Rate of return is one of the key factors that directly impact the withdrawal amount. Higher returns allow you to withdraw higher amounts without depleting the principal.
• Future Value: The future value i.e. the amount left after withdrawal or the desired balance. Your desired balance at the end of the withdrawal period directly influences your withdrawal amount.
• Withdrawal Frequency: Withdrawal frequency is number of the times that you want to withdraw money. Depending on your withdrawal frequency, your investment is impacted. A higher frequency of withdrawal leads to quicker depletion of the investment.

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.