MTF Calculator (Margin Trading Facility)
See what buying shares on your broker’s Margin Trading Facility really costs: the daily interest on the money the broker lends, every delivery charge, the price the stock must reach before you make anything, and your profit or loss on your own money compared with buying without MTF. Works for any broker: enter its interest rate and the margin it asks for.
You put in ₹1,00,000 and the broker lends ₹3,00,000 to buy 400 shares worth ₹4,00,000. Holding for 30 days costs ₹3,452 in interest and ₹1,044 in charges, so the stock has to reach ₹1,011 before you make anything. At ₹1,080 you make ₹27,504, 27.5% on your money, against 7.7% without MTF. A 23.9% fall would wipe out your entire margin.
Charges breakdown
| STT (0.1% on buy and sell) | ₹832 |
| Stamp duty (0.015% on buy) | ₹60 |
| Exchange transaction charges | ₹25 |
| SEBI fees | ₹1 |
| Brokerage (2 orders) | ₹40 |
| Pledge and unpledge | ₹50 |
| DP charge | ₹14 |
| GST (18% on fees, brokerage, pledge, DP) | ₹23 |
Interest = funded amount × rate × days ÷ 365. Brokers charge it daily, including weekends, often until the sale money settles; some use slab rates. Not including income tax on the gain. Checked 2026-11-06.
What is MTF?
Margin Trading Facility lets you buy shares by paying part of the price, at least 20%, while your broker lends the rest and charges interest every day until you sell or repay. You own the shares, which are pledged to the broker as security. With 25% margin, ₹1 lakh buys ₹4 lakh of shares: 4× leverage on both gains and losses.
How is MTF interest calculated?
Interest = funded amount × annual rate × days held ÷ 365. It is charged for every calendar day, including weekends and holidays. Most brokers quote a daily rate: 0.0342% a day is about 12.5% a year, 0.04% a day is 14.6%. Some use slabs, with higher rates on larger funded amounts.
| ₹3 lakh funded, held 90 days | Interest | Stock must rise just to break even* |
|---|---|---|
| 9.5% a year | ₹7,027 | 2.01% |
| 12.5% a year | ₹9,247 | 2.57% |
| 14% a year | ₹10,356 | 2.84% |
| 18% a year | ₹13,315 | 3.59% |
*400 shares at ₹1,000 with 25% margin, including all delivery charges.
MTF example: profit, loss and the break-even price
With ₹1 lakh of your own money and ₹3 lakh from the broker at 14%, you buy 400 shares at ₹1,000. Held for 30 days, the stock must reach ₹1,011.17 just to cover ₹3,452 of interest and about ₹1,040 of charges.
| Stock after 30 days | With MTF (₹1 lakh margin, 400 shares) | Without MTF (₹1 lakh, 100 shares) |
|---|---|---|
| Up 8% (₹1,080) | +₹27,504 (27.5%) | +₹7,706 (7.7%) |
| Unchanged (₹1,000) | −₹4,463 (−4.5%) | −₹285 (−0.3%) |
| Down 8% (₹920) | −₹36,430 (−36.4%) | −₹8,277 (−8.3%) |
Leverage multiplies the move in both directions, and even a flat stock costs you money. A fall of about 24% would wipe out your whole margin; long before that, the broker will ask you to top up.
How long can you hold MTF before interest eats the gain?
At 4× leverage and 14% interest, the break-even price rises by about 0.9% every month you hold. With the stock unchanged:
| Held for | Interest on ₹3 lakh | Break-even rise needed | Loss on your ₹1 lakh if flat |
|---|---|---|---|
| 7 days | ₹805 | 0.45% | ₹1,817 |
| 30 days | ₹3,452 | 1.12% | ₹4,463 |
| 90 days | ₹10,356 | 2.84% | ₹11,367 |
| 180 days | ₹20,712 | 5.44% | ₹21,723 |
| 1 year | ₹42,000 | 10.76% | ₹43,011 |
The same 8% rise that makes 27.5% in a month makes only 10.2% over six months, barely more than the 7.7% you would make without MTF. MTF suits short trades with a clear reason for a quick move, not long-term investing.
MTF margin rules and eligible stocks
- Eligible: Group I equity shares and equity ETFs only. Each broker publishes its approved list.
- Initial margin: VaR plus 3 times the extreme loss margin for Group I stocks in the F&O segment, VaR plus 5 times for other Group I stocks and ETFs, and never less than 20% of the trade value. Brokers set the margin for each stock at or above this, often 20–50%.
- Margin can be cash or shares: pledged Group I shares count after a haircut.
- Pledge: funded shares are pledged to the broker in a separate account and released as you repay.
- Margin call: if the margin falls short, you must add cash or shares; otherwise the broker can sell, no later than 5 working days after the call.
- Broker limits: only corporate brokers with net worth of at least ₹3 crore, approved by the exchange, can offer MTF, and one client can take at most 10% of a broker’s MTF book.
How are MTF trades taxed?
MTF shares are delivery trades, not intraday: sold within 12 months, the gain is short term and taxed at 20% under Section 196 (formerly 111A); after 12 months, 12.5% above ₹1.25 lakh a year. Brokerage and transaction costs reduce the gain; STT does not. Interest paid on money borrowed to buy listed shares is generally not accepted as a deduction from capital gains, so the interest is a cost you bear after tax. Check gains and losses before 31 March in the Tax-Loss Harvesting Calculator.
When to use a different calculator
- Averaging down on shares you already hold? Use the Stock Average Calculator.
- Tax on a sale of shares? Use the Capital Gains Tax Calculator.
- Borrowing for something other than shares? Compare the Personal Loan Calculator.
Sources
- NSE: FAQs on Margin Trading Facility (margin, collateral, pledge, square-off) (National Stock Exchange)
- BSE: FAQs on Margin Trading Facility (BSE)
- SEBI investor education (Securities and Exchange Board of India)
- How MTF interest is calculated (slab rates, calendar days) (Dhan)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
