What is Margin Trading Facility (MTF)?

MTF lets you buy stocks by paying only a part of the value upfront; the broker funds the rest and charges daily interest until you square off.

How is MTF interest calculated?

Interest = Funded Amount × Annual Rate × Days ÷ 36500. Most brokers charge 12–24% p.a.

Yes. Leverage amplifies both gains and losses. A sharp adverse move can trigger margin calls or forced liquidation.

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See interest cost of margin-funded positions.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Stock Value₹1,00,000

₹5K₹1Cr

Your Margin %25%

5%100%

Holding Days30 days

1365

Interest Rate (%)18%

5%30%

Your Margin₹25,000

Funded by Broker₹75,000

Interest Cost₹1,110

Total Cost₹1,01,110

Compare rates across 50+ banks.

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Margin Trading Facility lets you buy stocks with partial cash; brokers fund the balance and charge daily interest.

Interest = Funded × Rate × Days / 36500

Everything you need to know about the MTF Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.