Systematic Withdrawal Plan (SWP) Calculator enables you to measure how much you can earn on an interval (monthly, quarterly, or annually) from a lumpsum investment over a mutual fund. Let's take as an example, you have a lump sum amount of around 50 lakh, and you expect to generate a regular income of 60 thousand by the amount per month. In this situation, SWP can be beneficial for you. You can invest your fund in any mutual fund and avail of an SWP (Systematic Withdrawal Plan). A fixed amount (As per your choice eg. 60k/ month) will get credited into your savings account periodically until the period you have chosen, or the balance of the fund gets lower than the monthly income. During the phase of periodical withdrawals, your funds will also grow as per the fund's performance. Here is the example:
|Investment||Rs. 50,00,000.00 (50 Lakh)|
|SWP Amount||Rs. 60,000.00 / Month|
|Rate of Return||8% (CAGR)|
|Total Withdrawal||Rs. 72,00,000.00 (72 Lakh)|
|Total Profit||Rs. 23,21,439.00 (23 Lakh)|
|Balance (After 10 Years)||Rs. 1,21,439.00 (1.21 Lakh)|
Using the SWP Calculator is very easy. All you need to fill in the following inputs and click on the 'Calculate Now' button to get the result:
The calculation result contains estimated profit, fund balance after the fund life, an investment summary chart, and a growth table. The growth table represents the balance sheet of the SWP.
Measuring inflation over investments is very important. Inflation is the factor that reduces the value of the rupee or any currency over the times. For example, the value of 100 rupees will depreciate to 92 rupees next year if the inflation is around 7% per annum. So, taking into consideration of inflation while calculating the return of investments is a good financial practice. With Finlive's SWP Calculator you can consider inflation during the calculation. All you need to fill in the 'Rate of Inflation (%)' at the time of calculating. Eg. If you think the average rate of inflation will around 6%, just input 6 in the 'Rate of Inflation (%) field and click on the 'Calculate Now' button. In the 'Growth Table,' you can find the adjusted inflation in each row.
Finlive's SWP Calculator is FREE to use a financial calculator. Anyone who wants to estimate his/ her earnings from a Systematic Withdrawal Plan (SWP) can use SWP Calculator. It's easy to use and less time-consuming. Calculating SWP manually can take a lot of time and effort. Here, you only need to input few details and get the result within a second.