---
title: MTF Calculator
url: https://dhan.co/calculators/mtf-calculator/
page_type: calculator
last_updated: 2026-11-12
---

# MTF Calculator

Calculate margin available for trading.

## Introduction to MTF

MTF, or margin trading facility, enhances your buying power for stocks with facilities made available by stock brokers. Consider MTF as an option that increases your capacity to buy stocks. In margin trading, investors contribute a certain amount, and the balance is funded by stock brokers at a predetermined rate of interest.

## What is an MTF Calculator?

An MTF calculator helps in figuring out the costs related to interest and brokerage involved in margin trading. With the MTF calculator, you get a complete picture of the interest on borrowed funds for the specified period. In India, SEBI has prescribed clear disclosure of these charges.

Understanding all the charges beforehand is crucial for making informed financial decisions. Dhan's MTF calculator accomplishes just that. The MTF calculator helps you understand two key aspects:

- Leverage funded by Dhan.
- Interest on borrowed funds.

Once the charges are clear, investors can make informed investment decisions regarding whether it is worthwhile to proceed with the stockbroker.

## How to Use an MTF Calculator Online?

- **Step 1: Select the stock:** Select the stock in which you wish to invest. If the stock is not available, it means that the leverage is not available for that particular stock.
- **Step 2: Add Quantity:** Add the quantity of the intended stock to be purchased.
- **Step 3: Holding Period:** Add the holding period in days.

Certain fields such as brokerage, required margin and funding amount are pre-determined. Current market prices are auto-fetched from the market. Once the above fields are added, the amount (known as margin) to be brought by you, amount to be funded by Dhan and interest is known.

## Understanding MTF with an example

To understand MTF better, we take 2 situations.

- Investing without MTF
Assuming Mr. A has ₹1,00,000 and he invests in buying the shares. If the shares gain 15% after 30 days, he makes a profit of ₹15,000.
- Investing with MTF
Mr. X has ₹1,00,000 and he wants to invest in a stock. Assuming the stockbroker offers him 4X leverage for a particular stock, Mr. X can now invest up to ₹4,00,000. After 30 days, the stock gets appreciated by 15%. This results in a profit of ₹60,000 on ₹4,00,000 (invested using MTF). The interest amount for 30 days at 0.0342% per day on ₹3,00,000 (MTF amount) comes at ₹3,080.

With MTF, Mr. X made a profit of ₹56,058 as against Mr. A's ₹15,000 without using MTF.

## FAQs on MTF Calculator

### Is MTF beneficial?

The answer to this is both - Yes and No. Margin funding can be beneficial if a stock moves above your purchase price, provided you are able to cover interest costs and brokerage from the profits.

### Can MTF be used for intraday trading?

No, MTF cannot be used for intraday trading.

### Do I need to pledge stocks bought under MTF?

Yes. SEBI has mandated to pledge all the stocks purchased under MTF until the borrowed amount is paid off.

### Do I have to pay interest for trading holidays as well?

Absolutely! MTF interest gets calculated from the day you purchased shares using MTF facility till the day you sell the shares taken under MTF. This includes all the trading as well and non-trading days.