MTF Margin Trading Calculator India 2025
Calculate Margin Trading Facility (MTF) costs including interest, brokerage, STT, GST & all charges. Compare Zerodha, Groww, Upstox, Angel Broking & more.
Total MTF Cost
₹1.3 K
Break-even: 1.30% profit needed
Detailed Cost Breakdown
Worst-Case Scenario (Margin Call)
If stock falls by 80% or more, broker may force-sell your position.
Maximum Potential Loss:
₹21.3 K
(Your margin + All MTF costs)
💡 Protection: Set stop-loss orders and maintain buffer margin above minimum requirement.
Break-even Analysis
Your stock needs to rise by 1.30% to cover all MTF costs and break-even. This doesn't include potential profits.
What is MTF (Margin Trading Facility)?
MTF or Margin Trading Facility allows you to buy stocks by paying only a fraction (margin) of the total cost upfront. Your broker funds the remaining amount and charges interest on it. This enables you to take larger positions with limited capital, potentially magnifying both profits and losses.
MTF Cost Calculation Formula
Understanding how to calculate total MTF costs including interest, brokerage, and all taxes for margin trading
Step 1: Calculate Margin and Funded Amount
First, determine how much you pay upfront (margin) and how much the broker funds
Margin Amount = Investment Amount × (Margin % / 100)
Funded Amount = Investment Amount - Margin AmountExample:
For ₹1,00,000 investment with 20% margin requirement
Variables:
Step 2: Calculate Interest Charges
Interest is charged daily on the funded amount (not your margin)
Interest = (Funded Amount × Interest Rate × Days) / (365 × 100)Example:
For ₹80,000 funded @ 18% p.a. for 30 days
Variables:
Step 3: Calculate Brokerage & Taxes
Multiple charges apply on buy and sell transactions
Trading Charges = Brokerage (Buy+Sell) + STT + Exchange + Stamp Duty + GST + SEBIExample:
All trading charges on ₹1,00,000 transaction
Variables:
Step 4: Calculate Total MTF Cost
Sum of all interest charges and trading costs
Total MTF Cost = Interest Charges + All Trading ChargesExample:
Total cost for 30-day MTF position
Variables:
Step 5: Calculate Break-even Percentage
Minimum profit % needed to cover all MTF costs
Break-even % = (Total MTF Cost / Investment Amount) × 100Example:
Profit % needed to break even
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
Suitable For
MTF is best for traders who understand leverage and can manage risks.
Experienced traders with 6+ months market knowledge
Traders with strong conviction in short-term stock movements
Those who can monitor positions daily
Investors with emergency funds for margin calls
Risk-takers comfortable with leveraged trading
Traders with disciplined stop-loss strategies
Those seeking short-term (days to weeks) gains
Should Avoid
Avoid MTF if you don't meet the requirements or have low risk tolerance.
New investors with limited market experience
Long-term investors (use regular delivery instead)
Those who cannot afford to lose their capital
Investors unable to monitor positions regularly
People uncomfortable with debt or leverage
Traders without stop-loss discipline
Those investing their last savings or borrowed money
Tax Implications of MTF Trading
Capital Gains Tax
- • Short Term (held <1 year): 20% tax on profits
- • Long Term (held >1 year): 12.5% tax on gains above ₹1.25 lakh/year
- • STT is already paid during trading
Interest Payment - NOT Tax Deductible
Interest paid on MTF cannot be claimed as a tax deduction. It's considered a trading expense but not eligible for deduction under Income Tax Act. However, you can add brokerage and other charges to your acquisition cost for capital gains calculation.
Set-off of Losses
MTF trading losses can be set off against other capital gains:
- • Short-term losses can be set off against both short-term and long-term gains
- • Long-term losses can only be set off against long-term gains
- • Unabsorbed losses can be carried forward for 8 years
Hidden Charges & Risks to Watch Out For
Compounding Interest
Interest accumulates daily. For longer holdings, interest on interest (compounding) can significantly increase your costs. A 30-day position costs 2.5x more than a 10-day position.
Margin Call Risk
If stock falls below minimum margin, you must add funds immediately or face forced liquidation. Brokers can sell your holdings at unfavorable prices without your consent.
Conversion Charges
Converting MTF to regular delivery may involve additional fees. Some brokers charge DP charges or conversion fees, which add to your total cost.
Important Risk Disclosure
MTF trading involves high risk due to leverage. You can lose more than your initial investment. Interest costs accumulate daily, reducing profits. Market volatility can trigger margin calls and forced liquidation. Only invest what you can afford to lose. Past performance doesn't guarantee future results. Always use stop-loss orders and maintain buffer margin above minimum requirements.