STP Calculator India — Systematic Transfer Plan 2026

Last updated: 29 April 2026 Reviewed by Priya Sharma, CFA

A **Systematic Transfer Plan (STP)** lets you invest a lump sum in a liquid fund (earning ~6–7%) and automatically transfer a fixed amount to an equity fund each month. This gives you the safety of a liquid fund while gradually entering equity to benefit from rupee-cost averaging.

Initial Lumpsum in Source Fund (₹)

Monthly Transfer Amount (₹)

Source Fund Return (% p.a.) Debt/liquid fund rate

Target Equity Fund Return (% p.a.)

STP Duration (Months)

Final Equity Fund Corpus —

Remaining in Source Fund —

Source Fund Interest Earned —

Total Transferred to Equity —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹10 lakh lump sum via 12-month STP

₹10 lakh in liquid fund at 7%, transferring ₹83,333/month to equity at 12% for 12 months. Source fund earns ₹38,500 while you wait. Equity corpus after 12 months: approximately ₹10.7 lakh. Total wealth: ₹10.7 lakh equity + residual liquid. Compared with lump sum at 12%: ₹11.27 lakh — lump sum wins in a rising market.

STP in volatile market

If market falls 20% in month 3 of STP: early STP instalments benefit from lower prices (averaging). Lump sum investor sees 20% drop immediately. STP provides psychological and financial protection in downside scenarios.

Frequently Asked Questions

What is STP in mutual funds?

STP (Systematic Transfer Plan) automatically transfers a fixed amount from one mutual fund (usually liquid/debt) to another (usually equity) at regular intervals (monthly). It's an alternative to SIP when you have a lump sum — instead of investing everything at once (timing risk), you gradually move into equity.

STP vs SIP — which is better?

If you have a lump sum: STP reduces timing risk by spreading equity entry over 6–12 months. If you're investing from monthly income: SIP directly into equity is simpler. STP is not inherently better than investing the full lump sum — in a rising market, full lump sum beats STP. But STP reduces regret if market falls after investment.

How long should an STP run?

Typical STP duration: 6–12 months. Longer STPs (24–36 months) don't add much protection as market cycles are shorter. In a bear market: shorter STP (3–6 months) or stop STP and invest lump sum. In bull market: STP might mean you miss some gains. Balanced approach: 12-month STP in most conditions.

Is the STP Calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. Calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all smartphones.