Systematic Withdrawal Plan Calculator
A Systematic Withdrawal Plan (SWP) Calculator is a financial tool that helps to calculate the matured amount as per your monthly withdrawals. With a SWP calculator, you can also calculate the interest received from your investments. Let us learn more about SWP Calculator in this article.
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Systematic Withdrawal Plan (SWP)
- Systematic Withdrawal Plan Calculator
SWP Calculator
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What is a Systematic Withdrawal Plan Calculator?
A Systematic Withdrawal Plan (SWP) calculator is an online tool that helps you determine the amount of money you can withdraw from your investment funds on a monthly or annual basis. Simply put, it allows you to determine the right strategy to withdraw your funds to get a profit of high returns.
The SWP calculator takes into account the following details to provide you with an accurate estimation of your withdrawals and interest earned from your investment:
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Investment Amount
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Expected Annual Rate of Return
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Tenure of Your Investment
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Amount You Wish to Withdraw Monthly/ Yearly
It is a good idea to use this SWP calculator to check the final value because it makes the process of calculation very convenient.
SWP calculator can be helpful for retirement planning if you want to generate a consistent income stream from your investments.
- Insurance Companies
- Mutual Funds
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Virtue II PNB Metlife | 17.13% | 24.85% |
16.54%
View Plan
|
|
| Large Cap Equity Fund Tata AIA | 17.27% | 20.61% |
15.01%
View Plan
|
|
| Pure Equity Birla Sun Life | 16.12% | 20.92% |
14.98%
View Plan
|
|
| Grow Money Plus Fund Bharti AXA | 13.93% | 17.49% |
14.22%
View Plan
|
|
| Pure Stock Fund Bajaj Allianz | 15.48% | 19.56% |
14.18%
View Plan
|
|
| Diversified Equity Fund HDFC Standard | 13.59% | 16.57% |
13.95%
View Plan
|
|
| Growth Super Fund Max Life | 14.33% | 16.21% |
12.81%
View Plan
|
|
| Equity Fund SBI | 13.77% | 15.3% |
12.1%
View Plan
|
|
| Bluechip Fund ICICI Prudential | 12.07% | 14.63% |
11.3%
View Plan
|
|
| Equity Large Cap Fund Edelwiess Tokio | 11.75% | 14.25% |
11.15%
View Plan
|
|
Updated as of Nov 2024
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Active Fund QUANT | 24.92% | 31.48% |
21.87%
|
|
| Flexi Cap Fund PARAG PARIKH | 20.69% | 26.41% |
19.28%
|
|
| Large and Mid-Cap Fund EDELWEISS | 22.34% | 24.29% |
17.94%
|
|
| Equity Opportunities Fund KOTAK | 24.64% | 25.01% |
19.45%
|
|
| Large and Midcap Fund MIRAE ASSET | 19.74% | 24.32% |
22.50%
|
|
| Flexi Cap Fund PGIM INDIA | 14.75% | 23.39% |
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|
|
| Flexi Cap Fund DSP | 18.41% | 22.33% |
16.91%
|
|
| Emerging Equities Fund CANARA ROBECO | 20.05% | 21.80% |
15.92%
|
|
| Focused fund SUNDARAM | 18.27% | 18.22% |
16.55%
|
|
Updated as of Nov 2024
How Does SWP Calculator Work?
A SWP calculator is a tool that helps you calculate the monthly withdrawals you can make from your investment funds through a Systematic Withdrawal Plan (SWP) .
Formula for Calculating the Withdrawal Amount in a Systematic Withdrawal Plan (SWP):
Withdrawal Amount = (A × r) / [n × {1 - (1 + r)^(-nt)}]
Where:
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A = Initial Investment Amount
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R = Expected Rate of Return
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n = Number of Annual Withdrawals
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t = Investment Tenure (in years)
The SWP calculator will provide you with the following values:
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Total Investment Amount
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Total Withdrawal Amount
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Final Value in the Fund
Illustration of Systematic Withdrawal Plan Formula Calculation
Suppose you invest Rs. 5 lakhs for a year with a monthly systematic withdrawal of Rs. 10,000. If the annual rate of interest is 10%, your monthly balance sheet for an investment period of 1 year will be as follows:
| Month | Invested Amount | Withdrawal | Balance Amount | Interest Earned on Balance |
| 1 | 5,00,000 | Rs. 10,000 | Rs. 4,90,000 | Rs. 4083 |
| 2 | Rs. 4,94,083 | Rs. 10,000 | Rs. 4,84,083 | Rs. 4034 |
| 3 | Rs. 4,88,117 | Rs. 10,000 | Rs. 4,78,117 | Rs. 3984 |
| 4 | Rs. 4,82,101 | Rs. 10,000 | Rs. 4,72,101 | Rs. 3934 |
| 5 | Rs. 4,76,035 | Rs. 10,000 | Rs. 4,66,035 | Rs. 3883 |
| 6 | Rs. 4,69,918 | Rs. 10,000 | Rs. 4,59,918 | Rs. 3832 |
| 7 | Rs. 4,63,750 | Rs. 10,000 | Rs. 4,53,750 | Rs. 3781 |
| 8 | Rs. 4,57,531 | Rs. 10,000 | Rs. 4,47,531 | Rs. 3729 |
| 9 | Rs. 4,51,260 | Rs. 10,000 | Rs. 4,41,260 | Rs. 3677 |
| 10 | Rs. 4,44,937 | Rs. 10,000 | Rs. 4,34,937 | Rs. 3624 |
| 11 | Rs. 4,38,561 | Rs. 10,000 | Rs. 4,28,561 | Rs. 3571 |
| 12 | Rs. 4,32,132 | Rs. 10,000 | Rs. 4,22,132 | Rs. 3517 |
| Total interest Earned = | Rs. 45,649 | |||
How to Use a SWP Calculator?
Follow the steps mentioned below to make judicious use of a SWP Calculator:
Step 1: Open the Policybazaar SWP calculator.
Step 2: Enter the following details:
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Amount invested
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Withdrawal amount
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Expected rate of return
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Tenure of the investment
Step 3: Click on the “Calculate” button.
Step 4: The SWP calculator will show you the following information:
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Total amount you have invested
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Total amount you will withdraw during the tenure of the investment
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Final Value of your investment
Complete your financial analysis using the SIP Calculator.
What are the Benefits of SWP Calculator?
There are several benefits to using an SWP calculator; some of them are as follows:
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Determine the Optimal Withdrawal Amount: A SWP calculator can help you determine the maximum amount you can withdraw from your investment each year without running out of money. This is important to ensure that you have enough money to meet your financial needs throughout your retirement.
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Stay Disciplined in Your Withdrawals: It can be tempting to withdraw more money from your investment during market volatility. However, this can be risky, as you may end up running out of money prematurely. An SWP calculator can help you stay disciplined and stick to your withdrawal plan, even when the market is down.
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Calculate the Final Value of Your Investment: An SWP calculator can help you calculate the final value of your investment, taking into account your withdrawal amount, the rate of return, and the inflation rate. This will give you an idea of how much money you will have left after you have made all of your withdrawals.
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Compare Different Withdrawal Strategies: There are different withdrawal strategies that you can choose from, each with its own advantages and disadvantages. An SWP calculator can help you compare different strategies and choose the one that is right for you.
To Sum It Up
The SWP Calculator is a valuable tool that enables you to make informed and judicious decisions about your Systematic Withdrawal Plans (SWP). By providing the required financial information, you can estimate your withdrawal amounts, monitor investment balances, and tailor your SWP strategy to meet your specific needs and goals.
FAQs
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How do you calculate a systematic withdrawal plan?
To calculate a Systematic Withdrawal Plan (SWP), you need to determine the withdrawal amount, frequency, and duration of the plan. To make calculations of your SWP investment, either use an online Policybazaar SWP Calculator or use the following formula:Withdrawal Amount = (A × r) / [n × {1 - (1 + r)^(-nt)}]
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What is the final Value in the SWP calculator?
In an SWP calculator, the final Value refers to the remaining amount in your investment after executing the systematic withdrawal plan for a specific duration. It represents the Value of your investment at the end of the withdrawal period. -
Which bank is best for SWP?
There are many banks that offer SWP; some of the best banks among them are ICICI Bank, HDFC Bank, SBI Bank, Axis Bank, and Kotak Mahindra Bank. -
What is an SWP?
SWP stands for Systematic Withdrawal Plan. It is a financial strategy commonly used in ULIP funds, mutual funds^^, and other best investment schemes. An SWP allows you to withdraw a predetermined amount regularly from your investment while leaving the remaining amount invested. -
Which is better, FD or SWP?
FD is a good option for investors who want a low-risk investment with fixed returns. However, FDs are not very liquid, and you may not be able to access your money quickly if you need it.SWP is a good option for investors who want a more flexible investment with the potential for higher returns. SWPs are also more liquid than FDs, so you can access your money more easily if you need it.
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Is tax applicable on SWP?
Yes, tax is applicable on SWP based on the type of investment and holding period. It is subject to capital gains tax, with rates varying for equity and debt funds. Long-term gains are taxed at a lower rate, while short-term gains attract higher taxes. -
What is SWP for regular income?
SWP for regular income is a financial strategy where an investor sets up periodic withdrawals from their investment, such as ULIP funds and mutual funds, to receive a steady and predictable income stream. Instead of withdrawing the entire investment at once, SWP allows individuals, particularly retirees, to withdraw a fixed or variable amount regularly while the remaining funds continue to be invested. -
Is SWP good for retirement?
Yes, SWP (Systematic Withdrawal Plan) can be a beneficial strategy for retirement planning, as it allows you to receive a predetermined amount regularly by providing a predictable and steady income. SWP also offers flexibility in determining the withdrawal amount and frequency.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved
insurance
plan.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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