STP Calculator
Transfer from one fund to another, monthly.
Illustrative only — assumes a constant return and steady contributions. Actual mutual-fund returns vary and are not guaranteed. Not investment advice.
About the STP Calculator
An STP (Systematic Transfer Plan) calculator models moving a lumpsum from a low-risk fund (like a liquid or debt fund) into an equity fund in fixed monthly instalments. It shows the projected value of both the shrinking source and the growing target over the transfer period.
How it’s calculated
Your lumpsum sits in the source fund earning a lower return, while a fixed amount is transferred each month into the target fund earning a higher expected return. The calculator compounds both sides monthly — the source depletes as transfers leave it, the target builds up like a SIP — and totals the result.
Source: B = B × (1 + s) − T • Target: like a SIP of T at rate ts = monthly source return, t = monthly target return, T = monthly transfer amount, B = source balance. Each month T leaves the source and is invested in the target.
Frequently Asked Questions
What is an STP in mutual funds?
A Systematic Transfer Plan moves money from one fund to another in regular instalments — typically from a safer liquid/debt fund into an equity fund. It lets you deploy a lumpsum into equities gradually instead of all at once.
How is STP different from SIP?
A SIP invests fresh money from your bank account each month. An STP transfers money you already hold in one mutual fund into another. STP is often used to phase a lumpsum into equities while the parked amount still earns some return.
Why use an STP instead of investing a lumpsum directly?
An STP spreads your equity entry over months, averaging your purchase price and reducing the risk of investing everything just before a market dip, while the un-transferred money keeps earning in a safer fund.
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