STP Calculator

Schedules a fixed monthly transfer out of a lump sum sitting in one mutual fund, over a chosen period.

A Systematic Transfer Plan (STP) moves a fixed amount out of one mutual fund scheme (the source, often a low-volatility fund) into another (the destination, often an equity fund) at regular intervals — commonly used to move a lump sum into equity gradually instead of all at once. This calculator only schedules the amount leaving the source fund; it does not project what either fund would be worth once returns are applied.

How it works

Each month, the entered transfer amount is scheduled out of the source fund until either the chosen number of months is reached or the source amount runs out, whichever comes first. No growth is applied to the source balance while transfers are in progress, and no growth is applied to the destination fund at all.

What each input means

Initial amount

The lump sum starting balance in the source fund, before any transfers.

Monthly transfer

The fixed rupee amount scheduled to move out of the source fund each month.

Transfer period (months)

How many months the transfers are scheduled to continue, at most.

What the results mean

Total scheduled transfer

The total amount scheduled to move out of the source fund — the monthly transfer times the number of months, or the full initial amount if that's reached first.

Estimated source balance

What remains in the source fund after the scheduled transfers, with no growth applied.

Number of transfers

How many monthly transfers actually happen — equal to the chosen period, unless the source amount runs out sooner, in which case it stops there.

Assumptions

• The same transfer amount is scheduled every month, with no missed transfers.
• Neither the source nor the destination fund is assumed to grow or shrink from market movement during the period — this is a scheduling illustration, not a return projection.

Limitations

• This calculator does not model NAV movement, market returns, or losses in either the source or destination fund — real STP outcomes depend heavily on how each fund actually performs.
• It does not model exit loads, capital gains tax on each transfer (each STP instalment is a redemption from the source fund and can be a taxable event), or scheme-specific STP rules and minimums.
• An STP does not remove market-timing or capital-loss risk — it only changes the schedule on which money moves between funds.
• This is not a projection of what the destination fund would be worth; it only tracks the source fund's scheduled outflow.

Common mistakes

• Assuming an STP guarantees a smoother or better outcome than investing the lump sum directly — neither is universally better, and this calculator doesn't model returns to compare them.
• Forgetting that each STP transfer is typically a redemption from the source fund, which can have its own tax and exit-load consequences.

Example

For example, ₹10,00,000 in a source fund with a ₹50,000 monthly transfer over 12 months illustrates a total scheduled transfer of ₹6,00,000, leaving an estimated ₹4,00,000 in the source fund after 12 transfers.

FAQ