CalculatorsMTF Calculator

# MTF Calculator

MTF charges calculator helps you understand interest and other costs associated with margin trading.

Find the Stock

Current Market Price

Selling Price

Quantity

Holding Period

MTF Summary

₹ 00.00

Sell Value

₹ 00.00

₹ 00.00

Funded by Dhan

₹ 00.00(0X)

Transaction Charges

₹ 00.00

Profit

₹ 00.00

Returns without MTF (%)

00.00%

Returns with MTF(%)

00.00%

Exchange Turnover

₹ 00.00

Exchange Transaction Charges

₹ 00.00

Securities Transaction Tax STT

₹ 00.00

GST

₹ 00.00

SEBI Turnover Charges

₹ 00.00

Investor Protection Fund Trust IPFT

₹ 00.00

Clearing Charges

₹ 00.00

Stamp Duty

₹ 00.00

DP Charges

₹ 00.00

Brokerage

₹ 00.00

Pledge / Unpledge Charges

₹ 00.00

Interest Amount

₹ 00.00

Total Tax & Charges

₹ 00.00

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.

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.
1. 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.

2. Investing with MTF

Mr. X has ₹1,00,000 and he wants to invest in a stock. Assuming stockbroker offers him 4x leverage for a particular stock, Mr. X can now invest upto ₹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 15.99% annual rate on ₹3,00,000 (MTF amount) comes at ₹3,942.

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