SWP Calculator
Calculate your Systematic Withdrawal Plan with monthly or annual simulations
Input Parameters
Results
Projection Details
| Period | Balance | Withdrawn |
|---|
Portfolio Projection
Display Settings
To be accurate, the calculator applies a compound interest-based projection model:
SWP Balance = (Investment × (1 + r/n)^(n×t)) – Withdrawals
Where:
- r = annual rate of return
- n = number of compounding periods per year
- t = total number of years
- Withdrawals = total withdrawn amount during the investment period
The following formula assists in determining the duration of your corpus and the amount that will be in your portfolio following each withdrawal.
SWP vs SIP: What’s the Difference?
In as much as SIP (Systematic Investment Plan) and SWP (Systematic Withdrawal Plan) are both popular mutual fund tools, they serve the opposite purposes
| Feature | SWP (Systematic Withdrawal Plan) | SIP (Systematic Investment Plan) |
|---|---|---|
| Direction | Withdrawal | Investment |
| Objective | Generate regular income | Create wealth |
| Ideal For | Retirees or passive income seekers | Salaried individuals & investors |
| Cash Flow | Money outflow (you receive money) | Money inflow (you invest money) |
| Risk Level | Low to moderate | Moderate to high |
| Liquidity | Highly liquid | Investment-oriented |
| Best Use | Retirement planning, passive income | Long-term wealth creation |
The two plans can be used in harmony with each other as you invest using SIPs when you are working and retire using SWPs.
Let’s understand it better with a practical example:
- Consider an investment situation where you have invested AED 500,000 in a mutual fund that yields an average of 6 percent in a year, and you have pulled out AED 3,000 every month.
- Here’s what happens:
- Investment Amount: AED 500,000
- Withdrawal Amount: AED 3,000 per month
- Expected Return: 6% per annum
- Duration: 10 years
After 10 years, you would have:
- Total Withdrawn: AED 360,000
- Estimated Remaining Balance: AED 573,000
This implies that not only was your capital safe but also increasing, despite regular withdrawals.
Who Should Use an SWP Calculator?
An SWP Calculator UAE will suit all kinds of investors who are interested in receiving regular income and investment protection.
Retirees
In the case of those who have quit working, SWP is an income stream that does not eat into the principal.
Professionals
SWP is available to turn investments into a steady cash flow in case you want an extra source of monthly income.
Long-Term Investors
To investors in mutual funds or equity portfolios, SWP enables them to make partial withdrawals without compromising future growth.