Calculator
MTF calculator
Margin Trading Facility (MTF): leverage isn't free. Price the broker's funding before you pledge and buy.
Typical broker MTF rates: 9–18% p.a. Pledged holdings also carry haircut + invocation risk.
- Interest cost₹3,945
- Stock must rise0.99% just to break even
Hover a segment for value + share.
MTF leverage magnifies losses exactly as it magnifies gains — and the interest clock runs on weekends too.
What this calculator answers
₹4,00,000 of broker funding held for 30 days at 12% a year costs about ₹3,945 in interest, so the stock must rise about 0.99% just to cover the funding. Enter the funded amount, holding period and rate to price the leverage.
How it is calculated
Interest = funded amount × rate × days ÷ (365 × 100), and the break-even is that interest as a percentage of the funded amount.
Interest is charged on a simple daily basis for the days held; brokerage, DP charges, haircut and invocation costs are separate.
Common questions
Why does a 12% rate need only about 1% over a month?
The rate is annual, so 12% for 30 days is roughly 1% of the funded amount — which is exactly the move needed to break even before other costs.
Does the interest stop on weekends?
No. The clock runs on calendar days including weekends and holidays, which is why the formula divides by 365.
What else can go wrong with MTF?
Pledged holdings carry a haircut, and a fall in value can trigger a margin call or invocation. Leverage magnifies losses exactly as it magnifies gains.
Source & freshness
- Source
- Deterministic formula in lib/calculators.ts
- Timeliness
- Static-verified
- Method
- calculated
- Note
- Illustrative projection from your inputs — not a market quote.