The Systematic Withdrawal Plan or SWP offers investors a regular income and returns money that is left in the scheme. You may withdraw a fixed or a variable amount on a pre-decided date every month, quarter, or year. You may customize cash flows to withdraw, either a fixed amount or the capital gains on the investment.

The SWP simulation program shows the total value of the mutual fund investment after the withdrawal of fixed amount periodically. After withdrawal, the amount will be deducted from the investment while it continues to accumulate if any appreciation. This Systematic Withdrawal Plan calculator easily computes your matured sum as per your monthly withdrawals precisely. SWP Simulation tools are simplifying the way people invest in mutual funds.

A Systematic Withdrawal Plan (SWP) works in an opposite way to Systematic Investment Plan (SIP). A Systematic Investment Plan (SIP) allows an investor to invest a fixed amount at pre-determined intervals and a Systematic Withdrawal Plan (SWP) is a facility which allows an investor to withdraw a fixed amount at pre-determined intervals. The investor can choose the amount, the frequency and the duration of the SWP according to his needs. Withdrawals through SWP are subject to Exit Load as applicable.

An investor can use a Systematic Withdrawal Plan when he wants to have a regular cash flow from his investments. The need for a Systematic Withdrawal Plan differs for every person. SWP can be useful for child education, paying EMI’s, retirement etc.

The SWP Calculator is a simulation that shows you the monthly withdrawals from your mutual fund investments. It shows the total value of the mutual fund investment after the withdrawal. You may be able to get a regular income in retirement through the systematic withdrawal plan. The SWP Calculator consists of a formula box, where you enter the total investment amount, withdrawal per month, the expected annual rate of return, and the tenure of the investment. The SWP Calculator shows you the future value of your mutual fund investments.

The SWP Calculator shows you the regular cash flows through the systematic withdrawal plan. You must use the mathematical formula: A = PMT ((1+r/n)^nt – 1) / (r/n)) A = Future Value of the Investment PMT = Payment amount for each period n = number of compounds in a period t = number of periods the money is invested

The MintBox SWP Calculator helps you to calculate the SWP mutual fund investment over a tenure. As it is back testing actual data to use the Calculator:

• You must fill in the total investment amount in a particular mutual funds scheme.
• Enter the withdrawal per month from the mutual fund scheme
• You then enter the tenure of the investment in years.
• The SWP Calculator will show you the total investment, total withdrawal, and the final value of the investment.

For equity-oriented scheme-If your holding period is less than 1 year, the gains will be calculated as short-term capital gains and will be taxed at 15% and if the holding period is more than 1 year, then long term capital gains of 10% will be taxed if the individual’s total capital gains cross ₹1 lakh in a year.

For debt-oriented scheme-If your holding period is less than 3 years, gains will be calculated as short-term capital gains and will be taxed as per the investors tax slab and if the holding period is more than 3 years, then long term capital gains of 20% with the benefit of indexation will be taxed.

Note: In view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorized dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.