Margin Trading Funding (MTF) Interest Calculator

Margin Fund:
Interest Rate:	% Annual % Daily
Holding Duration Tenure:	days

MTF Interest Calculator for Daily Margin Trading Funding Cost

This Margin Trading Facility interest calculator estimates the daily and cumulative interest charged on the amount funded by a broker for a chosen holding period. It is designed to make the time cost of leverage visible before a trade is carried overnight. It does not estimate profit, loss, margin call, brokerage or the amount an investor may safely borrow.

Inputs

Margin fund is the broker-funded amount on which interest is charged, not necessarily the full market value of the shares.
Annual interest rate is the broker's stated yearly funding rate.
Holding duration is the number of funded calendar days modeled, up to 365 days in this calculator.

Confirm whether the broker charges from trade date, settlement date or another point and whether weekends and holidays accrue interest. Enter the actual funded debit shown by the broker rather than guessing from the order value.

Outputs and daily schedule

The result shows daily interest, funded amount and cumulative interest for the selected duration. The chart compares funding with interest and displays the daily charge. The table lists day number, opening funded amount, daily rate, interest for that day, cumulative interest and outstanding funded amount.

MTF interest formula

This calculator uses simple daily interest:

Daily rate = annual rate ÷ 365

Daily interest = funded amount × annual rate ÷ 365

Total interest = daily interest × holding days

The funded amount remains constant in the schedule and interest is not compounded. If the broker changes the funded balance after additional margin, sale, dividend adjustment or partial repayment, calculate each balance period separately. Broker rounding and tax on charges can create differences.

What Margin Trading Facility means

MTF is leverage in the cash market: the investor provides required margin and the broker funds the remaining eligible purchase subject to current exchange, SEBI and broker rules. Funded securities are subject to the prescribed pledge and margin framework. Availability, eligible securities, margin requirement and broker exposure can change; verify the latest broker and exchange information before trading.

Break-even return before other charges

Funding interest raises the price at which the trade becomes profitable. A simplified pre-charge break-even percentage on the total position is total funding interest divided by total position value. Brokerage, securities transaction tax, exchange charges, GST, stamp duty, DP charges and bid-ask spread can raise it further. This calculator shows only funding interest.

Leverage magnifies losses as well as gains

If a position worth 100 is partly funded with your capital and partly borrowed, a price decline applies to the full position while your equity is smaller. That can create a large percentage loss on your own money. Interest continues to accrue while the position is held, even when price is below purchase cost.

Margin shortfall and forced sale risk

When funded securities fall or margin requirements change, the investor may need to provide additional margin. If the shortfall is not met under applicable terms, securities can be sold. A forced sale can crystallize a loss and may occur at an unfavorable price. Do not treat the initial margin as the maximum possible loss.

Use cases for the MTF calculator

Compare funding cost for 7, 30, 90 and 365 days.
Compare two broker rates on the same funded amount and duration.
Estimate carrying cost before an event or expected exit date.
Calculate the additional return needed to cover funding interest.
Measure interest saved by reducing funded balance earlier.
Review cumulative cost on an existing MTF position.

Broker comparison checklist

Check the applicable rate slab, funded amount definition, compounding or simple-interest method, accrual start and end, minimum charge, brokerage, pledge cost, eligible securities, margin-call process, liquidation policy and how corporate actions are handled. Marketing rates can be conditional or revised. Use the current tariff and terms applicable to your account.

Current framework and changing rules

NSE's MTF FAQ explains current eligibility and margin concepts and lists the relevant circulars. SEBI published a consultation paper on review of the MTF framework in June 2026; a consultation is not a final rule. This article deliberately avoids hardcoding one universal maximum holding period or stock list. Check final circulars and exchange notices for the date of the trade.

Limitations

The calculator assumes constant funded amount, simple interest and one annual rate. It excludes every trading charge, tax, changing collateral value, margin shortfall, forced sale, dividend, corporate action and price movement. It is not a trading strategy, profit calculator or risk limit.

Frequently asked questions

Is MTF interest charged only on trading days?

Broker methods can differ; confirm whether calendar days, weekends and holidays are included.

Can a profitable stock trade still lose money after MTF?

Yes. Price gain may be smaller than interest and other transaction costs.

Does a lower broker rate make leverage safe?

No. Rate changes carrying cost, not market, concentration, liquidity or margin-call risk.

Authoritative MTF resources

Risk warning: MTF uses borrowed money and can produce losses greater than the investor's initial margin. Verify current rules and broker terms and use only within a defined risk plan.

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