What is an STP Calculator?
A Systematic Transfer Plan (STP) moves a fixed amount at regular intervals from one mutual fund to another within the same fund house, typically from a liquid or debt fund into an equity fund.
This calculator estimates the value of both funds over time as your lump sum moves across month by month.
How it helps you
- Plan how to invest a large amount gradually instead of all at once.
- See how long it takes for the full amount to move into the target fund.
- Compare the total value at the end with the amount you started with.
How it is calculated
Each month: transfer T from source → target; source grows at i₁, target at i₂
- T
- Monthly transfer amount (or what is left, in the last month)
- i₁
- Monthly rate of the source fund = its yearly return ÷ 12 ÷ 100
- i₂
- Monthly rate of the target fund = its yearly return ÷ 12 ÷ 100
- Total value
- Source fund balance + target fund value at the end
You park ₹10,00,000 in a liquid fund earning 7% and transfer ₹50,000 a month to an equity fund expected to earn 12%, over 5 years.
- 1Transfers continue for 22 months until the source fund is empty
- 2Total moved, including interest earned while waiting ≈ ₹10,59,848
- 3The target fund keeps compounding at 12% for the rest of the period
Estimated total value after 5 years ≈ ₹17,44,516.
How to use the STP Calculator
- 1Enter the lump sum you will place in the source fund.
- 2Enter the monthly transfer amount.
- 3Set the expected returns of the source and target funds, and the time period.
- 4Read the amount transferred, the target fund value and the total value.
Frequently asked questions
Why use an STP instead of investing the lump sum directly?
An STP spreads your entry into equity over several months, which can reduce the risk of investing everything just before a market fall, while the waiting money still earns a return.
Is every transfer taxable?
Yes. Each transfer is a redemption from the source fund, so capital gains tax may apply on the gains in that transfer, and an exit load may apply depending on the scheme.
Can I do an STP between different fund houses?
No. STPs are usually allowed only between schemes of the same fund house.
What is a good transfer period?
Many investors spread transfers over 6 to 24 months. The right period depends on the amount, your comfort with risk and market conditions.
Are the results guaranteed?
The result is an estimate based on a constant rate. Actual market returns change every year and are not guaranteed.