Systematic Withdrawal Plan (SWP) Calculator
Calculate SWP (Systematic Withdrawal Plan) Total Investment, Total Interest, Maturity Amount
What is SWP Calculator?
Systematic withdrawal plan or SWP is a financial mechanism where individual can invest a lump sum amount at once to receive fixed amount at regular intervals.
Now a day, to meet the future expense, a regular income is always welcome. In this scenario mutual funds are offering SWP or systematic withdrawal plan to maintain cash flow into your account based on the predetermined date selected by you.
So you are free from the burden of depositing money continuously over a period of time instead you can invest one time. On the other hand you can also customize the cash inflow to your account based on your requirement.
Why use a SWP Calculator?
The SWP calculator is a tool to provide estimated calculation based your given data to help you to manage your investments.
By using this calculator one can have the clear idea about how much maturity amount he will receive after the tenure and how his customizations of withdrawal plan impact the investment.
So if you want to go with manually calculating it will be a very tiresome and lengthy process to continue, thus using a online SWP calculator is always beneficial.
Advantages of using a SWP Calculator :
There are numbers of reason why one should use SIP calculator, here are some,
- Absolutely free and simple to use.
- Helps to understand how the investment works.
- Quick and effective.
- Results are shown on the basis of your given data.
- Helps users to determine suitable withdrawal plan.
Formula of calculating SWP (Systematic Withdrawal Plan)
Let us have an example to understand the SWP better. Assume, any individual invest Rs 1,00,000 at beginning at 10% interest rate for 1 year and decided to withdraw Rs 3000 monthly. That simply means you withdraw Rs 36000 after 1 year, and your final value of investment will be Rs 72378. So you see, beside the benefit of per month withdrawal, you can have (36000+72378) -100000 = Rs 8378 as an entire profit through this investment.