SWP Calculator

A Systematic Withdrawal Plan (SWP) allows investors to withdraw money from their mutual fund investments at regular intervals. Instead of redeeming the entire investment at once, SWP lets you withdraw a fixed amount or only the gains—monthly, quarterly, or annually—based on your financial needs. Using the SWP Calculator, you can estimate how long your investment will last, how much you can withdraw regularly, and what balance may remain after withdrawals.

Understanding Systematic Withdrawal Plans (SWP)

Here are some important points to understand about SWPs:

• SWP is a withdrawal facility, not a type of mutual fund
• Investors withdraw money by redeeming mutual fund units periodically
• Withdrawals can be planned monthly, quarterly, or annually
• Investors can choose to withdraw:
  • Only the capital appreciation (returns), or
  • A fixed amount, which may include capital
• SWPs help create a regular income stream from long-term investments
• Investors do not need to time the market, as withdrawals are spread over time
• Rupee Cost Averaging works in reverse during withdrawals, helping reduce the impact of market volatility
• Taxes are applicable on redeemed units as per mutual fund taxation rules

What is a SWP Calculator?

A SWP Calculator (Systematic Withdrawal Plan Calculator) helps you calculate the outcome of regular withdrawals from your mutual fund investment. It shows:

• Total withdrawals made over time
• Interest earned during the withdrawal period
• Estimated remaining investment value

The calculator requires basic inputs such as your initial investment, withdrawal amount, expected rate of return, and investment duration.

How Does the SWP Calculator Work?

The SWP calculator uses a standard future value formula to estimate your remaining investment value after regular withdrawals.

Formula Used

A = PMT × [((1 + r/n)ⁿᵗ − 1) ÷ (r/n)]
Where:
A = Future value of the investment
PMT = Withdrawal amount per period
r = Expected annual rate of return
n = Number of compounding periods per year
t = Total investment duration

Example: SWP Calculation

Suppose you have:

• Initial investment: ₹1,20,000
• Monthly withdrawal: ₹10,000
• Investment tenure: 12 months
• Expected annual return: 7%

After making regular monthly withdrawals, the investment balance gradually reduces while still earning interest on the remaining amount. At the end of 12 months, the estimated remaining balance is ₹4,026.

👉 Doing these calculations manually can be complex. The SWP Calculator instantly calculates everything for you.

How to Calculate Returns Using SWP Calculator?

To use the SWP Calculator, simply enter:

• Total invested amount
• Withdrawal amount per period
• Expected annual rate of return
• Investment duration

Once you enter these details, the calculator will instantly show:

• Total amount withdrawn
• Total interest earned
• Final value of your remaining investment

Who Should Invest in SWP?

SWP can be suitable for:

• Investors looking for a regular income from mutual fund investments
• Retirees who want to create a self-managed pension
• Investors using withdrawals to pay EMIs or recurring expenses
• Risk-averse investors who prefer debt mutual funds over bank deposits
• Investors who do not want to time the market for redemptions

Why Use Paytm SWP Calculator?

• Easy and instant SWP calculations
• Helps plan regular withdrawals efficiently
• No manual calculations required
• Useful for retirement and income planning
• Free and simple to use

Wrapping It Up

A Systematic Withdrawal Plan (SWP) helps you withdraw money from mutual fund investments in a structured and planned manner. Instead of redeeming your investment all at once, SWP allows periodic withdrawals while the remaining amount continues to earn returns. The SWP Calculator helps you estimate withdrawals, remaining balance, and overall returns—making it easier to plan your income and investments effectively.