MTF Calculator
| Total Trade Value | ₹1,00,000 |
| Your Margin (Own Funds) | ₹20,000 |
| MTF Financed Amount | ₹80,000 |
| MTF Interest Rate (p.a.) | 18.0% |
| Holding Period | 30 days |
| Interest Cost | ₹1,183 |
| Break-Even Price Increase Required | 1.18% |
| Stock Return at Exit | +10.0% |
| Gross P&L (before interest) | ₹10,000 |
| MTF Interest Cost | -₹1,183 |
| Net P&L | ₹8,817 |
| Return on Own Capital | 44.1% |
MTF involves significant financial risk. Losses can exceed your initial margin deposit. Actual interest rates, margin requirements, and mark-to-market calls vary by broker and SEBI regulations.
This calculator does not account for brokerage charges, STT, exchange fees, GST, SEBI turnover fees, or any other transaction costs. All results are hypothetical estimates for educational purposes only. Not financial advice.
MTF is regulated by SEBI under the Margin Trading Facility framework. Please read all terms and conditions of your broker's MTF agreement before using this facility.
What is MTF — Margin Trade Financing?
Margin Trade Financing (MTF) is a facility offered by SEBI-registered brokers that allows investors to purchase stocks by paying only a partial amount (margin) and borrowing the rest from the broker at a specified interest rate. It is a form of leverage — allowing you to take a larger position than your own capital would permit.
For example, if a stock costs ₹1,00,000 and your broker offers 80% MTF financing, you need to contribute only ₹20,000 (20% margin) while the broker funds ₹80,000. This gives you 5x leverage on your capital — meaning a 10% gain on the stock translates to approximately a 44% return on your own invested capital (before interest costs).
However, the same leverage that amplifies gains also amplifies losses. A 20% decline in the stock price at 5x leverage would wipe out your entire margin — requiring additional funds to maintain the position or resulting in forced liquidation by the broker.
Trade with knowledge,
not just conviction.
Our advisors can help you understand MTF mechanics, risks, and whether it suits your investment strategy.
High Risk Warning: Margin Trade Financing involves substantial risk of loss. The use of leverage can work against you as well as for you. You may lose more than your initial investment. Only invest with funds you can afford to lose entirely.
Illustrative Only: All calculations are hypothetical estimates based on user-entered assumptions. They do not account for actual broker-specific interest rates, eligible securities lists, margin call thresholds, forced liquidation prices, brokerage charges, STT, exchange fees, GST, or any other transaction costs.
Regulatory Framework: MTF is regulated by SEBI under the Margin Trading Facility framework. Brokers are required to maintain segregated accounts for MTF funds. Eligible securities, concentration limits, and margin requirements are defined by SEBI and updated periodically. Always refer to your broker's current MTF terms before trading.
Not Financial Advice: This calculator and all associated content are provided for educational purposes only and do not constitute financial advice, investment recommendations, or any form of regulated advisory. Peacock Wealth Management is a AMFI-Registered Mutual Fund Distributor (ARN: 358407). Please consult a qualified financial advisor before using MTF or any leveraged product.
Peacock Wealth Management Pvt. Ltd. | AMFI-Registered Mutual Fund Distributor (ARN: 358407) | Kilpauk, Chennai — 600010 | info@peacock.org.in | +91 93639 63411