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Investment & Wealth Creation
An SWP Calculator helps you structure a steady monthly income from an accumulated mutual fund corpus. Instead of putting money in every month (like an SIP), an SWP allows you to automatically withdraw a fixed amount every month while the remaining balance continues to stay invested and generate returns.
Imagine you have $100.0K in a mutual fund generating 10% annually. If you set up an SWP to withdraw $800 a month, the mutual fund company simply sells $800 worth of your units every month and deposits the cash into your bank account. Because your remaining balance is still growing at 10%, your capital depletion is heavily minimized—or even prevented entirely if your withdrawal rate is lower than your return rate.
The math requires calculating the compounding growth of the balance while simultaneously subtracting the monthly withdrawal:
End Balance = (Previous Balance × (1 + Monthly ROI)) - Monthly Withdrawal