# STP Calculator: Systematic Transfer Plan Returns > STP calculator: park a lump sum in a liquid fund and move it to equity monthly. See the final value, interest earned and a comparison with going all in. Source: https://trykosh.com/tools/stp-calculator Free tool - Investing # STP calculator Spread a lump sum into equity over several months instead of all at once. Enter the amount, the transfer period and an assumed return for each fund. Rules checked 25 October 2026Free - no sign-upRuns in your browser Estimated value after 10 years INR 32,25,138 INR 83,333 moved each month for 12 months Interest earned while parked**INR 33,356** All in equity on day one**INR 33,00,387** Left in the source fund**INR 20,09,661** Lump sum INR 10,00,000 Monthly transfer INR 83,333 Total moved into equity (with interest) INR 10,33,356 Value of the STP at the end INR 32,25,138 Gain on the lump sum INR 22,25,138 With fixed returns, investing everything on day one always wins when equity earns more. An STP gives up a little of that in exchange for not buying everything at one market level. Mutual fund investments are subject to market risks. Past returns don't guarantee future ones; the rate here is an assumption. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh tracks every SIP, FD and deposit in one place, and shows how far you are from each goal. [Start free](/signup?via=tool-stp-calculator) ## How the STP calculator works A systematic transfer plan (STP) starts with a lump sum in a lower-risk fund, usually a liquid or short-term debt fund, and moves a fixed amount from it into an equity fund every month. It's a SIP funded from a lump sum, so your money earns something while it waits its turn. The calculator splits your lump sum into equal monthly transfers. Each month, the transfer moves into the equity fund, then both funds grow for the month at their own assumed rates. The final transfer sweeps whatever is left, including the interest the source fund earned. After the transfers end, the equity balance keeps growing until the end of the period you set. It also shows two reference points: putting the whole amount into equity on day one, and leaving it all in the source fund. In a model with fixed returns, the day-one lump sum always ends highest. The STP's value is in what the model can't show: if markets fall during the transfer months, later transfers buy cheaper units. Both rates are assumptions. Liquid and short-term debt funds are often illustrated around 6% to 7%, equity at 10% to 12%, but neither is guaranteed. Each month: move T = L / m; source x (1 + iₛ), equity x (1 + iₑ) L lump sum m number of monthly transfers iₛ, iₑ monthly rates of the source and equity funds ## Worked example: Kavita moves INR 20 lakh over 18 months Kavita, 45, from Lucknow, receives INR 20 lakh from a matured policy. She parks it in a liquid fund assumed to earn 6.5% and transfers INR 1,11,111 a month into an equity fund for 18 months. The parked money earns about INR 97,569 while it waits. After 12 years, at an assumed 12% on equity, the STP could be worth INR 80.57 lakh, against INR 83.81 lakh if she'd invested everything on day one and INR 43.54 lakh if it had stayed in the liquid fund. Estimated value after 12 years INR 80,57,026 INR 1,11,111 moved each month for 18 months Interest earned while parked**INR 97,569** All in equity on day one**INR 83,81,231** Left in the source fund**INR 43,53,771** Lump sum INR 20,00,000 Monthly transfer INR 1,11,111 Total moved into equity (with interest) INR 20,97,569 Value of the STP at the end INR 80,57,026 Gain on the lump sum INR 60,57,026 With fixed returns, investing everything on day one always wins when equity earns more. An STP gives up a little of that in exchange for not buying everything at one market level. Mutual fund investments are subject to market risks. Past returns don't guarantee future ones; the rate here is an assumption. [Load this example into the calculator ->](?amount=2000000&months=18&srcRate=6.5&years=12#calculator) ## Good to know - Every transfer is a redemption from the source fund, so it's a taxable event. Gains on debt and liquid fund units bought after 1 April 2023 are taxed at your slab rate; the gain on each transfer is usually small. - Most fund houses allow STPs only between schemes of the same fund house, with a minimum number of instalments (often 6) and a minimum transfer amount. - Common STP periods are 6 to 18 months. Longer than that and you keep a large part of the money out of equity for a long time, which costs more in a rising market. - Check the source fund's exit load. Liquid funds have a small graded exit load only for the first seven days. ## Frequently asked questions What is an STP in mutual funds? A systematic transfer plan moves a fixed amount every month (or week) from one scheme to another within the same fund house, typically from a liquid fund into an equity fund. It lets you invest a lump sum gradually while the waiting money earns a debt-fund return. Is STP better than lumpsum? If markets rise steadily, investing the lump sum at once ends higher. If markets fall during the transfer period, the STP buys more units at lower prices and can come out ahead. It's a way to manage timing risk, not a way to earn more on average. What is the difference between STP and SIP? A SIP is funded from your bank account each month, usually out of salary. An STP is funded from a lump sum already invested in another fund, so the money waiting to be invested earns a return instead of sitting in a savings account. Is STP taxable? Yes. Each transfer redeems units of the source fund, and any gain on those units is taxed. For a liquid or debt fund bought after 1 April 2023, that gain is added to your income and taxed at your slab rate. ## Sources and assumptions - [SEBI investor education](https://investor.sebi.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.