Margin (MTF) cost & leverage
See what buying on margin (a broker’s MTF facility) really does: it magnifies the move on your own money in both directions, and charges interest on the borrowed part every day you hold. Read the leveraged return, the daily interest drag, and the fall that wipes your margin.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Trade value and your funds
The full position size, and the percentage you put in yourself. The broker funds the rest; your funds as a share of the trade set the leverage.
- Interest rate and days
MTF borrowing charges interest — typically 14–20% a year — accruing every day you hold. The longer you carry the position, the more the borrowed part costs.
- Price move
How far the stock moves while you hold it. The tool shows the profit or loss on your own capital, which is the move geared up by the leverage, minus interest.
Worked example: 4× leverage, 5% move
₹2,00,000 position, ₹50,000 of your own money (25%), 18% MTF rate, held 30 days, stock up 5%.
What to enter
- Trade value
- ₹2,00,000
- Your funds
- 25% (₹50,000)
- Interest rate
- 18% a year
- Held
- 30 days, +5% move
What it shows you
- Borrowed
- ₹1,50,000 (4× leverage)
- Interest (30 days)
- ≈ ₹2,219
- Net profit
- ≈ ₹7,781
- Return on your capital
- ≈ +15.6%
- Move to break even
- ≈ 1.11%
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Market Basics12 minMargin, pledging and the real cost of leverageMTF, pledging your holdings and intraday leverage all rent you money. What that rent actually costs, and why the same 10% fall behaves completely differently once you have borrowed.
- Risk & Psychology11 minBorrowed money, and why it changes the arithmeticLeverage multiplies the outcome without improving your accuracy, and it hands somebody else the right to decide when you exit.
- Market Basics10 minDelivery vs intraday: which one, and whenThe first real choice on every order screen — CNC or MIS. What actually differs (leverage, square-off, charges, tax), and which suits what you are trying to do.
- Market Basics12 minFutures and options, explained honestlyWhat derivatives are, why they exist, how leverage actually works — and the SEBI data on what happens to retail traders who use them.
- Technical Analysis12 minLot size and margin: the smallest bet the exchange will let you makeIn the cash market you choose the position size. In derivatives the exchange fixes the lot, and margin is collateral against loss — not the amount at risk.