The irony about saving money is it feels too much while saving, but never feels enough at the time of withdrawal. The scariest thing about withdrawing money from your savings is the fear of running out. But with SWP, you don’t have to worry about it! 

Here’s all you need to know. 

What is the Systematic Withdrawal Plan?

Imagine you've got this smart, savvy friend who's figured out a way to make their investments pay them back regularly, almost like getting a paycheck from your savings! That's pretty much what a Systematic Withdrawal Plan (SWP) is all about.

Here's how it works: You decide how much money you want to pull out from your investment pot, and like clockwork, on a date you choose—every month, every three months, or once a year—that amount lands in your account. 

And the best part is, you get to call the shots on how much you withdraw. It can be a fixed sum, so you know exactly what to expect each time, or you could go with the flow of capital gains, taking out whatever profits your investment has earned.

Let’s understand this with an example:

Suppose you have invested 100,000 AED in a mutual fund for a year. You have decided to withdraw a fixed amount of 5000 AED every month. 

So, each month, the principal amount will be reduced by 500 AED. The remaining amount will remain invested and accumulate interest while the interest rate stands at 10%.

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Now that you have an understanding of SWP, let’s get to our main topic!

What is a SWP calculator?

There is no doubt that most people find investing complicated, the reason has a lot to do with crunching numbers while keeping multiple variables in mind. The SWP calculator is here to make that process simple and seamless for investors. 

So, you have enrolled in a SWP scheme, our calculator will calculate the monthly withdrawals and the total matured amount within seconds.

Systematic Withdrawal Plan Calculator is an online tool that calculates the return from an SWP scheme through mutual funds and reflects the total value of the investment after withdrawal.

What are the advantages of using a SWP calculator?

SWP is suitable for anyone who is looking for fixed monthly financial input. Retirees and senior citizens are the most common beneficiaries of this scheme. But any investor can make the best of the scheme and the SWP calculator.

Here are some benefits of using the SWP calculator:

• Time-Saving: Saves you from long tedious calculations by automating the process.
• Flexible: You can choose, set, and change the amount you wish to withdraw every month, check the return on maturity, and make your final decision.
• User-friendly: The calculator is straightforward and does not require any expertise to operate. All you have to do is put the variables in the respective boxes, and the output is ready.
• Accessibility: It is always available to you online and you can use it anytime, anywhere, even from your mobile device

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How to use the SWP calculator?

Using Rudo’s SWP calculator is easy. Just enter the details and get the results. 

Having difficulty filling in the details? Don’t worry! We have got your back.

How to fill in the details:

• Total Investment: Enter the sum of money you have invested into the Mutual fund. 
• Withdrawal per month: Enter the amount that you wish to withdraw every month
• Time Period: Enter the number of years you want to withdraw the money for. 

Assume you are retired and enrolled in the SWP scheme. If your age is 65 and your life expectancy is 85, you will put in the period of 20 years. 

• Annual Return: Enter the annual rate of return on investment that your Mutual Funds are providing you. 

RuDo Calculator will calculate and show you the final value of the investment in seconds.

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