What is an MTF Charges Calculator?
What is an MTF Charges Calculator?
Blog Article
An mtf charges calculator is a handy online tool that helps investors estimate the total cost of using the Margin Trading Facility (MTF). It calculates the interest, brokerage fees, and other charges you’ll incur when you buy stocks using borrowed funds from your broker.
Why Use an MTF Charges Calculator?
When you trade under MTF, you don’t just repay the borrowed amount—you also pay daily interest and additional charges. The MTF calculator helps you:
Estimate total interest payable for a specific holding period.
Compare costs for different stocks and investment amounts.
Plan better by knowing your break-even point and real profitability.
How MTF Charges Calculator Works
Typically, you need to input:
Investment amount
Margin provided by the broker
Interest rate (usually between 12%-18% annually)
Duration of holding (number of days)
Brokerage fees, if applicable
Example:
| Input | Value |
|---|---|
| Investment Amount | ₹1,00,000 |
| Margin Paid | ₹25,000 |
| Interest Rate | 15% p.a. |
| Holding Period | 30 days |
Output:
Interest = ~₹921
Total Cost = Brokerage + Interest
Benefits of Using MTF Charges Calculator
Transparency: No hidden surprises in your bill.
Quick Decision-Making: Helps decide if margin trading is profitable.
Better Risk Management: Understand your actual exposure.