STP Calculator
Move a lumpsum into equity in monthly steps.
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Enter your numbers to see the result.
This STP calculator models a Systematic Transfer Plan: you invest a lumpsum in a liquid or debt fund, and a fixed amount moves into an equity fund every month until the source is used up. It shows the final value, how long the transfers run, and how the result compares with putting the whole amount into equity on day one.
What is a STP Calculator?
A Systematic Transfer Plan (STP) moves money from one mutual fund to another in fixed instalments. The usual set-up is to park a lumpsum in a liquid or ultra-short debt fund and transfer a set amount each month into an equity fund of the same fund house.
STP combines the two common approaches: your money is invested from day one (in the safer fund), and it enters equity gradually like a SIP. An STP calculator shows the final value and the time the transfers take, and compares the outcome with a direct lumpsum.
How does the STP Calculator work?
The calculator moves your transfer amount from the source fund to the equity fund at the start of each month, then grows each fund at its own monthly return. When the source fund runs out, the transfers stop and the equity fund keeps growing until the end of the period.
For comparison it also grows the whole lumpsum at the equity return from day one.
How to use the STP Calculator step by step
- Enter the lumpsum you will park in the source fund.
- Enter the monthly transfer to the equity fund.
- Enter the expected source fund return (liquid funds usually earn close to short-term rates).
- Enter the equity fund return.
- Choose the total period.
- Compare the STP result with the direct lumpsum line.
STP Calculator example with real numbers
You receive ₹6 lakh and park it in a liquid fund earning about 6.5%. You set up an STP of ₹50,000 a month into an equity fund expected to earn 12%, and stay invested for 5 years.
| Example input | Value |
|---|---|
| Lumpsum in source fund | ₹6,00,000 |
| Monthly transfer to equity | ₹50,000 |
| Source (liquid/debt) fund return | 6.5% |
| Equity fund return | 12% |
| Total investment period | 5 years |
| Example output | Value |
|---|---|
| Value after 5 years | ₹10,62,617 |
| Transfers run for | 1 year 1 month |
| Value in equity fund | ₹10,62,617 |
| Left in source fund | ₹0 |
| Gains | ₹4,62,617 |
| If invested in equity at once | ₹10,90,018 |
| Difference | -₹27,401 |
The STP calculator shows the transfers finish in 1 year 1 month, and the total grows to about ₹10,62,617. Investing the whole ₹6 lakh in equity on day one would give ₹10,90,018 if returns were perfectly steady; the STP gives up a little of that for a smoother entry.
Key features of this STP Calculator
- Month-by-month simulation of both funds
- Duration of transfers shown
- Balance left in the source fund
- Direct lumpsum comparison
- Honest note on what STP does and does not do
Who should use the STP Calculator?
Who is this STP Calculator for?
- Investors with a large sum who worry about market timing
- Retirees moving a lump retirement benefit into equity
- People shifting money from FDs to equity funds
- Advisers explaining STP to clients
Practical use cases
- Planning a 12-month STP for a bonus
- Choosing between 6-month and 12-month transfers
- Comparing STP with a direct lumpsum
- Seeing how much the source fund earns while waiting
Key benefits
- Smoother entry: spreads equity purchases over time.
- Money keeps working: the source fund earns while you wait.
- Discipline: transfers happen automatically.
- Clarity: see the trade-off against a lumpsum.
Tips for better results
- Keep the STP period between 6 and 12 months for most lumpsums.
- Use a liquid or overnight fund as the source to keep risk low.
- Choose source and target funds from the same fund house; STP works within one AMC.
- Check exit loads on both funds.
Common mistakes to avoid
- Running an STP for several years, which keeps too much money out of equity.
- Using a volatile debt fund as the source.
- Expecting STP to beat a lumpsum in a rising market.
- Forgetting that each transfer is a sale for tax purposes.
Limitations of this STP Calculator
- It assumes steady returns for both funds, so it cannot show the main benefit of STP, which is reducing timing risk.
- Each transfer counts as a redemption from the source fund, which may be taxed.
- It does not include exit loads.
STP Calculator vs other ways to calculate
| Approach | Equity entry | Idle cash | Timing risk |
|---|---|---|---|
| STP | Gradual | Earns liquid fund return | Lower |
| Lumpsum | All at once | None | Higher |
| SIP from bank account | Gradual | Earns savings rate | Lower |
| Wait for a dip | Uncertain | Often idle | High (missed gains) |
If you invest from monthly income, a SIP is simpler. If your horizon is long and you are comfortable with volatility, a lumpsum may end higher.
Privacy and data handling
This STP Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
STP Calculator FAQs
What is STP?
A Systematic Transfer Plan moves a fixed amount from one mutual fund to another at regular intervals, usually from a liquid fund to an equity fund.
When should I use STP instead of a lumpsum?
When you have a large sum and are worried about investing it all just before a market fall. Spreading it over 6–12 months reduces that risk.
Is STP taxable?
Yes. Each transfer is a redemption from the source fund, and any gain on the units sold is taxed. Liquid fund gains are taxed at your slab rate.
What is the difference between STP and SIP?
A SIP moves money from your bank account to a fund. An STP moves money between two funds of the same AMC, so the waiting money earns a return.
Does STP give higher returns than a lumpsum?
Not always. In a steadily rising market a lumpsum usually wins. STP helps when markets fall soon after you invest.
How long should an STP run?
Most advisers suggest 6–12 months for a lumpsum. Longer periods keep too much money in the low-return source fund.
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Sources and references
We checked the method and the current figures used in this STP Calculator against these official and primary sources:
- AMFI: Association of Mutual Funds in India
- Mutual Funds Sahi Hai: AMFI investor education
- SEBI Investor Website
Written and reviewed by the Qorico Team
