Financial Calculators
STP Calculator
A lumpsum deserves equity, but not necessarily on one nervous morning. STP deploys it in calm monthly steps.
Value at the end of the STP
₹13,18,198
- Equity holding
- ₹12,80,933
- Still in debt fund
- ₹37,266
- Amount transferred
- ₹12,00,000
A Systematic Transfer Plan deploys a lumpsum into equity gradually, earning debt returns on the waiting portion. Exact month-by-month simulation; taxation of each transfer applies as per rules.
Deploying a lumpsum without the nerves
A Systematic Transfer Plan parks your lumpsum, a bonus, gratuity, DSOP payout or property sale, in a debt fund and moves a fixed amount into an equity fund every month. The waiting money earns debt returns instead of idling, and the equity entry is averaged across months rather than gambled on one date.
This calculator simulates both buckets exactly: the debt balance earning its rate while depleting, and the equity holding growing with each transfer.
The two buckets
Each month:\n transfer moves from debt to equity\n equity = (equity + transfer) x (1 + equity rate/12)\n debt = remaining debt x (1 + debt rate/12)Worked example: a Rs 12,00,000 lumpsum transferring Rs 1,00,000 a month for 12 months, with debt at 6.5% and equity at 12%, ends the year at about Rs 13,18,198: Rs 12,80,933 in equity and Rs 37,266 still in debt.
Frequently asked questions
How long should an STP run?
Six to twelve months suits most lumpsums; very large amounts relative to your portfolio can take 12-18. Stretching beyond that mostly just delays equity's work.
Is STP better than investing the lumpsum at once?
Statistically, immediate deployment wins slightly more often because markets rise more than they fall; behaviourally, STP wins because investors actually stay the course through it. The best plan is the one you will not abandon.
How are STP transfers taxed?
Each transfer is a redemption from the debt fund, taxable as per debt fund rules for your holding period. The convenience usually outweighs the small tax friction, but factor it in.
Which funds should the two legs use?
A liquid or low-duration fund for the parking leg and your chosen equity fund for the destination, generally within one fund house so transfers are seamless.
Have a lumpsum in hand?
Gratuity, bonus or sale proceeds: we structure the deployment so it is neither rushed nor idle.