What is an MTF Calculator?
What is an MTF Calculator?
Blog Article
An mtf calculator is an online tool that helps you estimate the total cost of using margin trading, including interest and other applicable charges. It allows you to understand how much you’ll pay for borrowing funds under MTF before placing a trade — helping with better financial planning.
Key Inputs in an MTF Calculator
| Input | Description |
|---|---|
| Loan Amount (Margin) | The amount borrowed from the broker. |
| Interest Rate | Broker’s annual interest rate (usually ~12–18%). |
| Holding Period (days) | How long you plan to hold the position. |
| Other Charges | Brokerage, pledging fees, GST, etc. |
Example Calculation
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Borrowed amount = ₹50,000
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Interest rate = 15% p.a.
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Holding period = 30 days
Interest = ₹50,000 × 15% × (30 ÷ 365) ≈ ₹616
This ₹616 is the interest cost — plus any additional charges.
Why Should You Use an MTF Calculator?
✅ Estimate true costs before entering a trade
✅ Compare scenarios with different holding periods or loan amounts
✅ Avoid surprises from high interest or hidden fees
✅ Plan your profitability more accurately
Conclusion
Both MTF and the MTF Calculator are powerful tools for investors who want to trade with leverage. While MTF can help amplify returns, it comes with risks and costs. Using an MTF Calculator ensures you fully understand the cost of borrowing and make informed decisions before taking the plunge.
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