Home Software SWP Calculator: Meaning, Working & Use Cases

SWP Calculator: Meaning, Working & Use Cases

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SWP Calculator

Mutual funds have diverse investment modes, allowing investors to plan and maneuver their investments as per their needs, budgets, and preferences. One mode of investment in mutual funds is SWP. An SWP or systematic Withdrawal Plan facilitates investors to generate regular incomes by investing a lump sum amount in mutual funds. The SWP’s withdrawal amount can be fixed or variable, and the duration of the withdrawal can be monthly, quarterly, or yearly. While the idea of earning a consistent income lures many investors, its planning is one the most critical aspects of its success. Here, an SWP calculator can ease the task of planning your SWP.

What is an SWP calculator?

SWP calculator is a financial tool that helps investors to compute and plan their periodic withdrawals and ROI from an SWP. SWP calculator basically helps you keep a tab on your mutual fund investments so you can reap the best return on your investments while enjoying a consistent income. Most of the SWP calculators are available online for users to access. To use the SWP calculators, you just need to select or give a few inputs, and you are ready with results without much ado. You can use the SWP calculator to analyze various mutual fund schemes and their returns to identify the best investment opportunity. However, the results from the SWP calculator may differ from what returns you will receive from your investments as they don’t consider certain factors like exit load, inflation, etc.

How do SWP calculators work?

The SWP employs the following mathematical formula to perform the calculation related to SWP.

FV = WAMT ((1+r/n)^nt – 1) / (r/n))


FV denotes the future value of the investment, excluding withdrawals.

WAMT denotes the total withdrawal amount during the investment tenure

r denotes the expected interest rate

n denotes the number of compounding during the investment period

t denotes the investment period 

Let’s understand the manual SWP calculations with an example.

Suppose you invest Rs 5 lakhs in a mutual fund scheme through an SWP plan for two years with a periodic withdrawal amount of Rs 10,000 (monthly). The expected rate of return stands at 7%. But, when you choose to perform manual calculations by utilizing these investment values to reach the final amount (the amount you will get at the end of the tenure), it becomes a little confusing.

Here, an SWP calculator simplifies the process with one single input methodology. You only need to give the inputs, and the results appear within a few seconds. Manual calculations are also excessively time-consuming and can produce wrong results. An SWP calculator again removes such situations and offers accurate, straightforward, and quick results for your SWP. As per the example, if you use an SWP calculator to perform these calculations, you will get the final value in one go which is Rs 3,16,178. You can change the input value as many times as you need until you find suitable numbers in terms of investment and withdrawal amount.

SWP Calculator Use Case

Here’s a sample use case of the best SWP calculator from Glide Invest to help you understand how it works

  • User: Investor
  • The Goal: To identify the final investment value at the end of the tenure
  • Steps followed

Step 1: The Investor visits the website.

Step 2: Once the website opens, the Investor clicks on the menu bar.

Step 3: Under the Tools section, the Investor clicks or taps on Financial calculators. Upon clicking, he gets redirected to the Financial calculator page.

Step 4: The investor clicks on the SWP calculator and gets redirected to the SWP calculator page.

Step 5: The investor gives the inputs for the sections like lumpsum investment, withdrawal per month, investment period, and expected rate of return.

Step 6: The SWP calculator processes the inputs and offers results.

  • Results from the SWP calculator: The results will appear to investors in the form of a graphical representation and numerical data.
  • Total investment: The investment amount the investor will require to achieve the desired returns.
  • Total withdrawal: The amount the investor can withdraw during the SWP period.
  • Final value: The final returns the investor will get against his total investment amount, excluding the withdrawals.

In case the SWP calculator shows the final value to be negative. The investor will alter the values and repeat steps 5 and 6 until he achieves the desired results or returns. 


SWP calculators indeed have simplified the way we invest in the SWP of mutual funds. Having been available online, these calculators have made financial planning and investment easier than ever before. Utilize the power of the SWP calculator to estimate the best returns of your investment through SWP to enjoy dual returns benefits from the plan.

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