Best SWP Calculator With Inflation – Systematic Withdrawal Plan

Systematic Withdrawal Plan (SWP)

SWP or Systematic Withdrawal Plan is a way to generate regular income through your investing.

Till now we always heard about investment is meant for a long term horizon, for your retirement, etc. but what if you wanted to generate a regular income for you passively through your investments.

Well, that’s how a SWP works where you invest a lumpsum amount once with a plan to generate some regular income probably monthly or quarterly.

This can be one of the way to generate a regular income if you are planning to retire or already got retired and have a big savings lying in the form PPF or gratuity you received at the time of retirement.

Or if you got some bonus, sold a property, or you have gotten some windfall gain which you are planning to invest in order to generate a regular income.

SWP Calculator

SWP Calculator is designed to check how long you can survive if you invest a lumpsum amount today and get a certain average annual return on that amount while you keep withdrawing some money monthly.

While calculating this can be really difficult and time consuming, hence The Honest American Systematic Withdrawal Plan Calculator do this heavy task for you.

Getting a right calculation is really important as your future depends upon it, thus our SWP Calculator make sure that you get the right calculation so that you can somehow predict your future a little bit.

The Honest American SWP Calculator with Inflation

Now let’s take a look how you can use The Honest American SWP Calculator or Systematic Withdrawal Plan Calculator to know how long you can survive with the lumpsum you are investing today.

While our calculator is designed in such a way that you can easily do the calculation, but make sure you put the right and realistic values because many returns that look good on the SWP Calculator, can be unrealistic to achieve like getting 30% average annual return for a long period of time.

To use our SWP Calculator:-

• Firstly, enter the lumpsum amount you wanted to invest in the “Initial Investment Amount Column”
• After that enter how much money you wanted to withdraw every month from your SWP plan
• In expected average annual return you can choose 11-13% average annual return if you are investing in equity mutual fund or can choose 8-9% average annual return if you are investing in debt mutual fund.
• Finally, if you wanted to withdraw money that is inflation adjusted then you can enter the average inflation rate you are expecting or else can enter “0”

Result Display:

• Initial Amount Invested: The starting investment amount.
• Total Withdrawn Amount: The total amount withdrawn over the period.
• Remaining Amount: The amount left after the period, adjusted for inflation and withdrawals.

SWP Returns Calculator – Factors To Consider

1. Investment Duration – The most important part of investment is the duration. While in short term markets can be volatile but in long term equities market tend to give 11-13% on an average hence, you should focus on long term to get such returns
2. Amount Withdrawing – Rule of thumb is that you don’t withdraw more then 4% of your total investment in a year if you wanted to keep withdrawing the money for lifetime and don’t wanted to exhaust your investment completely.
3. Expected Return Rate – Higher the average annual return rate will be longer your corpus can survive hence, for that you should focus on equity mutual fund but with high return, high volatility and high risk also comes.
4. No Restriction – While there is no restriction on when you start withdrawing and how much you withdraw every month but that can be risky thing if you are not disciplined.
5. Taxation – The SWP Returns calculator shows you final return but not returns after taxation and mutual fund fees, hence be aware that you will pay to the tax on the mutual fund you are invested in as per their types.

Benefits of Our SWP Calculator

1. Easy To Use – In just a few seconds you can calculate how long you can survive on your lumpsum investment if you systematically withdraw some amount every month.
2. Retirement Planning – You can plan your retirement easily because with this investment calculator you play with the numbers and know exactly how much amount exactly you should invest.
3. SWP Calculator With Inflation – Most people ignore the inflation factor while calculating the returns from systematic withdrawal plan, hence, you get a option in The Honest American SWP Calculator to calculate the inflation adjusted returns and also withdraw the money inflation adjusted.
4. 100% Free – This is the Best SWP Calculator as it is 100% Free and easily accessible online.

Disclaimer: The Honest American provides financial education, investing strategies, & stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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