STP Calculator – Move Money Smartly from Debt/Liquid to Equity

Simulate monthly transfers, dual returns (source & target), step-up and inflation. Visualize growth & export CSV.

STP Plan Details

Start with a lump-sum in a source fund (e.g., Liquid/Ultra-short). Transfer a fixed amount into a target fund (e.g., Equity/Hybrid) at a chosen frequency.

Amount parked initially in source fund
Fixed transfer into target fund each period
Liquid/short-term style return assumption
Equity/hybrid style return assumption
How long you will transfer
Increase transfer every year (optional)
For “real value” insights

Your Result STP Projection

Total Transferred
₹0
Growth – Source Fund
₹0
Growth – Target Fund
₹0
Final Value in Target
₹0
Download STP CSV

STP Projection (Abridged)

First 12 + last 12 rows shown here. Export CSV for the full schedule.

What is an STP & Why Use It?

Systematic Transfer Plan (STP) shifts money at regular intervals from a relatively stable fund (source) to a growth-oriented fund (target). It helps deploy a lump-sum gradually into equity, smoothing entry points and keeping idle cash productive meanwhile.

  • The source fund earns its own return (e.g., 5–7% p.a.).
  • Each transfer buys units of the target fund; those units then compound at the target’s expected return.
  • Optional Step-Up STP increases the transfer each year to accelerate deployment.

When is STP helpful?

STP: Advantages & Disadvantages

Advantages

  • Smoother market entry: Averages purchase price over months, reducing timing risk on a large lump-sum.
  • Money doesn’t sit idle: Source fund (liquid/ultra-short) earns while you wait to deploy into equity.
  • Rules over emotions: Fixed transfer schedule avoids hesitation and panic buying/selling.
  • Customizable pace: Choose frequency (monthly/quarterly), duration, and even a Step-Up each year.
  • Risk-managed ramp-up: Useful when volatility is high or valuations look stretched.
  • Tax planning friendly: Redemptions in source can be managed for holding period/tax efficiency (product dependent).
  • Goal alignment: Lets you sync deployment pace with upcoming goals or cash-flow visibility.

Disadvantages

  • May underperform lump-sum: If markets trend up strongly from day one, delaying hurts final value.
  • Two-fund complexity: You’re tracking returns, taxation, and paperwork for both source and target funds.
  • Execution discipline needed: Skipping transfers or changing amounts frequently defeats the purpose.
  • Opportunity cost: Source fund returns are usually lower than long-term equity—long STPs can drag.
  • Tax events in source: Each transfer is a redemption; capital-gains rules apply (varies by fund type & holding period).
  • Not a downside shield: STP smooths entries but cannot eliminate market risk in the target fund.

Quick guidance

  • For a standard lump-sum, many investors test 6–18 months monthly STP; shorter if markets look attractive.
  • Consider a modest Step-Up (5–10%/year) if income visibility is strong and you want faster deployment.
  • Re-check plan every quarter—if valuations/volatility change, adjust period or amount rather than pausing randomly.

STP Calculator – FAQs

Is STP return guaranteed?
No. Returns depend on market performance of both funds. This tool illustrates outcomes based on your assumptions.
How is STP different from SIP?
SIP invests fresh money periodically. STP moves money from one fund to another—your source corpus funds each transfer.
What should I choose as source and target funds?
Commonly: Source = Liquid/Ultra-Short/Arbitrage; Target = Equity/Hybrid. Pick per risk and horizon.
How long should I run an STP?
Popular choices: 6–18 months for deploying a lump-sum. Our calculator lets you test 1–120 months.
What is Step-Up STP?
An annual percentage increase to your transfer amount (e.g., +10% each year) to deploy faster as confidence increases.
Will STP always beat lump-sum?
No. If markets rise sharply from day one, lump-sum may win. STP aims to reduce regret by averaging entries.
Is there tax on transfers?
Each transfer is a redemption from the source fund and a purchase in the target fund. Capital gains (if any) on the source apply as per fund type and holding period.
Can I modify or stop STP?
Yes. Most AMCs allow changes or cancellation; remaining corpus stays in the current fund.
Does the calculator consider inflation?
Yes—enter an inflation rate to see an indicative “real value” of the final corpus.
Can I export the full schedule?
Use the Download STP CSV button under results to export every period’s details.