Total Investment
Withdrawal per month
Expected Returns (P.a)
%
Time Period (Years)
Total Investemt
Ex. Returns
Total Value
Systematic Withdrawal Plan
Systematic Withdrawal Plan (SWP) is a smart plan that allows you to redeem units and withdraw money from a mutual fund scheme in a phased manner, at a frequency of your choice. This could be ideal for investors who want a regular cash flow. Usually, the intervals are monthly, quarterly, or annual. However, based on the type of fund and the asset management company (AMC) you have chosen, you may also be able to customise it. If you want to get an estimate of the future value of your investment, based on your withdrawals, using an SWP calculator is recommended.
What Is a Systematic Withdrawal Plan (SWP) Calculator?
An SWP mutual fund calculator is a smart way to calculate the future value of your mutual fund and your expected returns based on the withdrawals you make from the fund at your chosen frequency. It saves you time, manual effort, and provides an error-free result. It can help you build a corpus, consistent with your long-term financial goals, in a manner through which you can continue to enjoy a regular cash flow, while also maximising the returns potential of your investment.
Let us now take a look at the mathematical formula based on which an SWP calculator operates:
Formula Used by an Systematic Withdrawal Plan Calculator
This is how you can calculate the final value of your investment if you plan to start an SWP:
A = P ((1+r/n)^nt-1)/(r/n)
where,
A = future value of your investment
P = the amount withdrawn at the end of each period
r = rate of return per year
n = number of times compounding is done per period
t= the tenure
For example, if you invest ₹2 Lakh in a mutual fund for 5 year at an expected rate of interest of 12% p.a. and decide to withdraw ₹500 from the fund every month via the SWP route, the final value of your investment will be ₹30,000* and your total earnings will be ₹3,12,298*.
*Based on the results of the Navi SWP calculator
To understand how a systematic investment plan calculator works, let us consider the following example:
An Example to Illustrate the Benefits of SWP
Let us assume that you have invested ₹5,00,000 in a mutual fund scheme. Let us also assume that you plan to withdraw ₹10,000 per month. Let’s say the tenure is 12 months and the expected rate of return is 10% p.a.
| Month | Beginning Balance | Interest Earned | Withdrawal | Ending Balance |
| 1 | ₹500,000 | ₹4,167 | ₹10,000 | ₹494,167 |
| 2 | ₹494,167 | ₹4,118 | ₹10,000 | ₹488,285 |
| 3 | ₹488,285 | ₹4,067 | ₹10,000 | ₹482,352 |
| 4 | ₹482,352 | ₹4,015 | ₹10,000 | ₹476,366 |
| 5 | ₹476,366 | ₹3,962 | ₹10,000 | ₹470,327 |
| 6 | ₹470,327 | ₹3,908 | ₹10,000 | ₹464,235 |
| 7 | ₹464,235 | ₹3,853 | ₹10,000 | ₹458,088 |
| 8 | ₹458,088 | ₹3,797 | ₹10,000 | ₹451,885 |
| 9 | ₹451,885 | ₹3,740 | ₹10,000 | ₹445,626 |
| 10 | ₹445,626 | ₹3,682 | ₹10,000 | ₹439,308 |
| 11 | ₹439,308 | ₹3,623 | ₹10,000 | ₹432,931 |
| 12 | ₹432,931 | ₹3,562 | ₹10,000 | ₹426,494 |
So, going by the above calculation, your return on investment at the end of 1 year would be ₹46,494.
How to Use the SWP Calculator?
The SWP calculator is a tool that helps you plan your withdrawal from a mutual fund scheme or investment portfolio. It also helps you meet and stay on course with your long-term financial and wealth creation goals.
Follow the steps below to calculate your withdrawals with Navi’s SWP calculator:
Select the investment amount
Choose the amount with the help of the slide bar
Select withdrawal per month
Next, use the slide bar to choose the month
Select the return rate
Now, move the slide bar to select the return rate
Select the time period
Slide the bar to set the time tenure
In seconds, you will be able to view your withdrawal value
How Can an SWP Calculator Help You?
An SWP calculator eliminates the need to manually calculate the final value of your investment, provided you have chosen or want to choose the SWP route. Here are some ways in which it can help:
- To quickly calculate your monthly income from an investment for which you have set up SWP
- To check the maturity amount of an investment, based on the different withdrawal amounts you choose
- You can even get an estimate of your SWP surplus, which you may be able to invest in some other investment vehicle to maximise your returns potential
Advantages of Using Navi SWP Calculator
User-friendly design
Navi SWP calculator is user-friendly and offers a clean interface
Saves time
Navi SWP calculator simplifies the math and provides results instantly
Helps you plan better
Helps you plan and meet your long-term financial goals
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Frequently asked questions
When to make a systematic withdrawal?
In general, SWP is best done when you require regular income as an additional fund. While there is no age limit to when one may begin, it makes more sense for retirees to use this facility to generate stable income in retirement. The idea is to ensure you have a steady income while also ensuring your fund does not deplete too soon.
What are the benefits of SWP?
The benefits of SWPs are:
- You pay tax only on gains
- Helps retirement planning
- Can generate regular income
Is SWP limited to specific individuals?
No, SWPs are not limited to a single individual type, retirees, or senior citizens. SWPs can be affected by anyone who has made a lump sum investment in a fund and wants to withdraw predetermined amounts systematically over a set period of time.
Can I choose my amount of withdrawal, or is it fixed?
Yes, you can choose your amount, it’s not fixed. You can also withdraw more or less, depending on your circ*mstances.
What amount should I withdraw?
The amount you withdraw will depend on several factors such as invested amount, rate of return and time period. Tweak your withdrawal amount depending on your financial goal.
Can I self-operate my withdrawals?
Yes, the Navi SWP calculator needs no expertise for operation. Just fill in the details, and in an instant, generate your withdrawal details.
Can I use the money immediately?
After clearing all formalities, you can access your money.
Disclaimer : Navi does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained/data generated herein or on its completeness/accuracy. The use of any information set out is entirely at the user’s own risk.
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