INR 103,988.63

Systematic Withdrawal Plan (SWP) is not an investment plan, it is a withdrawal structure. You can invest in an instrument such as mutual funds using SIP or lumpsum amount and later when you want a regular income from your investment, you can choose to do an SWP. In the next few sections, we will go through several topics related to SWP and try to uncover most of the related knowledge.

Kindly note that this is not a financial advice. As the circumstances of life play a big role in the way we plan our investments, it is better to consult a financial adviser before you start your investing journey.

What is SWP - Systematic Withdrawal Plan?

SWP stands for Systematic Withdrawal Plan. SWP is a withdrawal structure that allows you to automatically withdraw a fixed amount of money at regular intervals (monthly, quarterly, semi-annually, or annually) chosen at the time of plan setup.

The amount withdrawn is from the aggregate of principal and returns generated. The remaining invested amount continues to accumulate interest. In certain SWPs you can choose to keep your invested capital intact and make withdrawals only from the returns generated.

All this makes SWP one of the perfect options for individuals seeking a regular income from their investments.

How can an easy SWP calculator assist you?

• Multiple use-cases: You can use our SWP Calculator to easily perform the below calculations:

  • Calculate how long can you continue to withdraw a fixed amount from SWP.

  • Calculate the remaining/balance amount after a certain period in your SWP plan.

  • SWP calculator with inflation adjustment to adjust the impact of inflation in your buying power.

• Easy-to-use: SWP calculations become complex and tedious as you must take the investment amount, interest calculations, withdrawal frequency, withdrawal amount, and impact of inflation into account to arrive at meaningful numbers. It is easy to be lost in the calculations and overlook any meaningful insights.

  Using our free SWP calculator, you can get insightful numbers as soon as you enter the required details for calculation.

• Free-to-use: This SWP calculator is completely free, and we do not bog you down with suggestions on various funds or try to sell you random things.

How to use SWP calculator?

Our easy-to-use SWP calculator requires minimal inputs to work. To see complete definition and requirements for various input fields, please see below:

• Total/Lumpsum Investment: Total amount of money you plan to invest into SWP. If needed, you can also change the currency (INR, USD, GBP, AUD, EUR) for exact results, but currency selection is completely optional and does not alter the calculations.

• Expected Annual Return: The expected annual rate of interest offered by the investment plan from which you will do SWP.

• Withdrawal Frequency: Select the frequency at which you want to withdraw. You can select any one of the possible withdrawal options from Monthly, Quarterly, Semi-Annually, or Annually.

• Withdrawal Amount: Amount of money you want to withdraw every time at the set frequency.

• Withdrawal Start: Month and Year when you plan to start withdrawing from the investment. The selection must be equal to or higher than the current month and year.

• Withdrawal End: Month and Year when you plan to stop withdrawing from the investment. Please note that this field will be hidden if you use the calculator option “I want to know how long I can withdraw?”

• Adjust for Inflation (Optional): Select Yes if you want to calculate SWP with inflation adjustment. This option will not increase your SWP amount but instead provide you the same buying power as of today. It works by adjusting the expected interest rate to account for Inflation rate. This is an optional field.

• Annual Inflation Rate (Optional): Adjust the rate of inflation to match the inflation rate of your country for more accurate calculations. This option is only available if you have selected Yes in “Adjust for Inflation” field.

Once you have filled in the required values and selected appropriate options for your investment, just hit the submit button for a detailed calculation overview. Voila! You would have the summarized and month-on-month view of how your SWP option will work.

Finally, some articles/references from around the web:

• Article: Planning Your Finances - Timeless Advice
• Reference: SWP Full Form

If you don’t find a way to make money while you sleep, you will work until you die.