STP Returns Calculator
When you run a Systematic Transfer Plan (STP), a fixed amount moves into your target fund every month, and each transfer then starts compounding from the date it lands. Our STP Returns Calculator focuses purely on that side of the equation — it estimates how much your target fund can grow to, based on your monthly transfer amount, expected annual return, and the number of years the STP continues, without needing to track the source fund separately.
This makes it a quick way to estimate the growth of the equity (or other target fund) leg of an STP, similar to how a SIP calculator projects a monthly investment — since from the target fund’s perspective, an STP transfer behaves exactly like a SIP installment.
STP Returns Calculator Formula
Since each monthly transfer into the target fund compounds independently from its transfer date, the STP Returns Calculator uses the same future value formula used for SIP investments:
M = P × [ ( (1 + i)^n − 1 ) / i ] × (1 + i)
Where:
- M = Value of the target fund at the end of the STP period
- P = Monthly transfer amount moving into the target fund
- i = Expected monthly rate of return of the target fund (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly transfers (STP period in years × 12)
The Estimated Returns is calculated by subtracting the total amount transferred from this final value:
Estimated Returns = Target Fund Value (M) − Total Transferred (P × n)
Example Calculation
Suppose your STP transfers ₹5,000 every month into a target equity fund for 10 years, and the fund is expected to deliver an average annual return of 12%.
- Monthly Transfer Amount (P): ₹5,000
- Expected Annual Return: 12% (Monthly rate i = 1%)
- STP Period: 10 years (n = 120 months)
Using the formula:
M = 5,000 × [ ( (1 + 0.01)^120 − 1 ) / 0.01 ] × (1 + 0.01) ≈ ₹11,61,695
So the results would be:
- Total Transferred = ₹5,000 × 120 = ₹6,00,000
- Target Fund Value ≈ ₹11,61,695
- Estimated Returns ≈ ₹5,61,695
This means that steadily transferring ₹5,000 a month for 10 years into a fund earning an expected 12% annually could grow to nearly double the amount transferred — purely through the power of compounding on each monthly transfer, the same effect that drives SIP returns.
FAQs about STP Returns Calculator
What does the STP Returns Calculator show?
It estimates the value your target fund could grow to from your STP transfers alone, based on the monthly transfer amount, the target fund’s expected annual return, and the number of years the STP runs — it does not account for the source fund, since that side isn’t part of this calculation.
Is the formula the same as a SIP calculator?
Yes. From the target fund’s point of view, each STP transfer behaves exactly like a monthly SIP installment, so the same future value of a series formula applies.
Are STP returns guaranteed?
No. The target fund’s returns are market-linked and not guaranteed. This calculator uses your assumed expected return rate to project an estimate — actual returns can be higher or lower depending on how the target fund performs.
Should I also account for the source fund separately?
This calculator focuses only on the target fund’s growth. If you also want to see the remaining balance in your source fund and the combined total value of both funds together, use a full STP Calculator that simulates both funds simultaneously.
Is this STP Returns Calculator free to use?
Yes, this calculator is completely free to use, requires no sign-up, and can be used as many times as you like to test different transfer amounts, return rates, and time periods.
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