STP Calculator

Model a Systematic Transfer Plan — moving money from a source fund into a destination fund — and see the final values on both sides.

Source Amount (₹)

Monthly Transfer (₹)

Source Return (% p.a.)

Destination Return (% p.a.)

Number of Months

Frequently Asked Questions

What is an STP?

A Systematic Transfer Plan moves a fixed amount from one mutual fund (usually a low-risk debt fund) into another (usually equity) at regular intervals, averaging your entry into the market.

Why use an STP?

It lets you park a lump sum in a safer fund and move it gradually into equity, reducing the risk of investing everything at a market peak.

Are returns guaranteed?

No. Both funds carry market risk; the returns you enter are assumptions. Estimates only, not advice.

Understanding the STP Calculator

This STP (Systematic Transfer Plan) Calculator estimates the outcome of moving a fixed amount at regular intervals from one mutual fund (the source, often a liquid or debt fund) into another (the target, often an equity fund), in rupees. It tracks the shrinking source balance and the growing target balance over the transfer period, using separate expected returns for each. It is built for investors phasing a lumpsum into equities gradually. Results assume steady returns and are educational estimates for planning, not guaranteed figures or investment advice.

How it works

Enter your lumpsum in the source fund, the per-installment transfer amount and frequency, the transfer period, and an expected return for each fund. In every period the source fund earns its return, then the transfer amount is subtracted; that same amount is added to the target fund, which earns its own (usually higher) return. The calculator repeats this until the period ends or the source is depleted, showing both balances over time. This staggers market entry, averaging your purchase cost in the target fund while the parked money still earns a modest return in the source fund rather than sitting idle.

Each period: Source_new = Source_old x (1 + rs/n) - T; Target_new = Target_old x (1 + rt/n) + T, where T = transfer per period, rs/rt = source/target annual returns, n = transfers per year

Worked example

Lumpsum Rs 6,00,000 in a liquid fund (source return 6%), transferring Rs 50,000 per month into an equity fund (target return 11%). Month 1: source 6,00,000 x 1.005 = 6,03,000, minus 50,000 = Rs 5,53,000; target 0 x 1.00917 + 50,000 = Rs 50,000. Month 2: source 5,53,000 x 1.005 = 5,55,765, minus 50,000 = Rs 5,05,765; target 50,000 x 1.00917 + 50,000 = Rs 1,00,458. Over 12 months the full corpus shifts into equity while earning along the way.

Tips & common mistakes

Each transfer is a redemption from the source fund and can trigger capital gains tax and exit load.
STP averages your entry price but does not guarantee better returns than a one-time lumpsum.
Use a realistic, usually lower, return for the source (liquid or debt) fund.
Set the transfer frequency in the tool to match your actual STP mandate.
Shorter transfer periods reduce parked-money drag; longer ones spread market-timing risk more.

Sources & methodology

• AMFI — Investor awareness and fund types (https://www.amfiindia.com/investor-corner)
• SEBI — Investor education on mutual funds (https://investor.sebi.gov.in/)

Reviewed by the TopOpenTools editorial team · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.