Finance & Investment · Mutual Funds & SIP
STP Calculator
Plan a Systematic Transfer Plan (STP): park a lump sum in a liquid or debt fund and transfer a fixed amount into an equity fund every month. See how long the transfers take, what both funds are worth at the end, and how that compares with investing the whole amount at once or leaving it in the debt fund.
Your inputs
Quick start — try a typical case
₹ 12 lakh
₹ 1 lakh
From the first transfer to when you'd redeem.
Your result Live
Value After 10 years
₹36,40,515
₹36,40,515 in the target fund
- Transfers Take
- 1 year 1 month (₹12,36,156 moved)
- Gain
- ₹24,40,515
- Annualised Return (CAGR)
- 11.74%
- All at Once in the Target Fund
- ₹37,27,018 (+₹86,503)
- Left in the Source Fund
- ₹22,52,565
- Lump sum · 33%₹12,00,000
- Gains · 67%₹24,40,515
Year by year
10 rowsWith steady returns, investing everything at once in the higher-return fund always ends higher. An STP's real benefit is averaging your entry price when markets swing — which a fixed-return projection can't show.
Each transfer is a redemption from the source fund, so capital-gains tax and any exit load apply to it.
An estimate from the assumptions you entered, not a guaranteed outcome.
How this is calculated
Each month: T = min(transfer, Source); Source = (Source − T)(1 + iₛ); Target = (Target + T)(1 + iₜ)
- iₛ, iₜ
- Monthly returns: (1 + annual return)^(1/12) − 1 for the source and target funds
- T
- Monthly transfer, made at the start of each month until the source fund is empty
An STP is a middle path between a lump sum and a SIP: the whole amount is invested from day one (earning liquid-fund returns), while equity exposure builds up gradually. That cuts the risk of investing everything just before a market fall, at the cost of lower returns on the money still waiting in the source fund.
Assumptions & sources
- Constant annual returns, applied monthly as effective rates.
- Transfers at the start of each month until the source fund is exhausted.
- Taxes, exit loads and expense changes aren't deducted.
- 1Mutual fund investor education (SIP, lumpsum, risk) — AMFI — Association of Mutual Funds in India
- 2Investor education material — SEBI — Securities and Exchange Board of India
- 3CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
Calculator ID FIN-INV-STP-001 · version 1.0.0
Common questions
How long should an STP run?
Commonly 6 to 12 months for a large lump sum into equity — long enough to spread your entry across market moves, short enough that most of the money isn't idle in a low-return fund for long.
STP or lump sum?
If returns were steady, a lump sum would win. Markets aren't steady: an STP lowers the regret and risk of a badly timed lump sum, which is why it's popular for bonuses, maturity proceeds and inheritances.
Is an STP taxed?
Yes. Every transfer redeems units of the source fund, so gains on those units are taxed (debt fund gains at your slab rate) and any exit load applies.