An SWP (Systematic Withdrawal Plan) Calculator is a digital tool that helps investors plan and estimate the periodic withdrawals they can make from their mutual fund investments. SWP allows you to withdraw a fixed amount at regular intervals (monthly, quarterly or annually) from your investment, while the remaining corpus continues to stay invested and grow. The calculator provides clarity on: how long your money will last with chosen withdrawals, the balance amount left invested and the potential returns generated during the withdrawal period. This helps in planning retirement income, regular cash flows or supplementing earnings.

An SWP Calculator offers multiple benefits: 1) Plan Steady Income - Retirees or individuals seeking regular cash flow can use SWP to create a reliable stream of income. 2) Balance Between Growth & Withdrawal - Unlike lump-sum redemption, SWP lets part of your money grow while you withdraw systematically. 3) Tax Efficiency - SWP can often be more tax-efficient than traditional fixed-income options, depending on the holding period. 4) Customize to Your Needs - You can set the withdrawal amount and frequency as per your lifestyle and financial goals. 5) Avoid Running Out of Funds - By projecting how long your money will last, the calculator helps prevent over-withdrawals and ensures sustainability.

The calculator takes into account: Initial Investment (Corpus), Withdrawal Amount & Frequency, Expected Rate of Return and Investment Duration. Example: Suppose you invest ₹20,00,000 in a mutual fund with an expected return of 10% annually and set up an SWP of ₹25,000 per month. Initial corpus = ₹20,00,000, Monthly withdrawal = ₹25,000, Annual return = 10%, Duration = 10 years. At the end of 10 years, you would have withdrawn ₹30,00,000 in total while still potentially retaining a corpus of over ₹11,00,000—depending on actual market performance. This demonstrates how SWP provides income + growth simultaneously.

A systematic withdrawal plan calculator ensures that your withdrawal strategy aligns with your lifestyle requirements and financial goals. Key advantages include: 1) Plan your withdrawals based on the desired amount, frequency and tenure. 2) It helps you compute an estimation of the total withdrawals and the remaining corpus at the end of your chosen tenure. 3) Shows accurate results and saves the time and effort needed for manual calculations.