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Pay Later (MTF) Calculator

  • Expected MTF trade value (₹)

  • Current MTF rate (%)

    Annual Daily

  • MTF subscription charge (₹)

  • MTF orders

    Minimum value allowed is 1

  • Brokerage type

    Per Order % Brokerage

  • Brokerage per MTF Order (₹)

    Minimum value allowed is 1
    203050
m.Stock
Effective Interest Rate
6.99%
Annual Interest
₹39,14,400
Subscription Charges
₹0
Total Expense: ₹39,14,400

(Annual Interest + Subscription)

^6.99% p.a. for funding above ₹5 crore; 9.99% p.a. for funding above ₹25 lakh up to ₹5 crore; 14.99% p.a. for funding up to ₹25 lakh

What is a Pay Later (MTF) Calculator?

A Pay Later (MTF) Calculator, also known as an MTF calculator or margin trading calculator, is an online tool that helps you estimate how much margin you’ll need to take a position in the stock market using the Margin Trading Facility (MTF). It can also calculate the interest cost applicable for holding that position over time. If you’re planning to use borrowed funds to buy stocks but wish to hold them beyond one trading day, the MTF calculator becomes a valuable companion.

Margin Trading Facility allows you to buy stocks by paying only a part of the total trade value upfront, while your broker funds the rest. The MTF margin calculator tells you how much of your own capital is required and how much margin you’re eligible for based on the selected stock. It also shows the applicable MTF rate, which is the interest charged on the borrowed funds.

For instance, if you want to buy shares worth ₹1,00,000 and your broker offers 4x leverage, you may only need to invest ₹25,000 while the rest is covered through MTF. The MTF calculator will instantly show how much you’ll pay in interest for holding this position for a chosen number of days.

The MTF calculator helps ensure you make informed, cost-conscious decisions before investing your hard earned funds. It removes guesswork and brings transparency to margin-based trading, helping you plan your trades with greater confidence.

An Example to Understand Pay Later (MTF) Better

Say you want to buy 30,000 shares of Reliance Industries Ltd. currently trading at a market price of ₹2,340. Your total trade value comes to ₹7.02 crore. To take this position, you will need 25% of the trade value i.e., ₹1.75 crore as margin. To fund the balance ₹5.26 crore, you can use
m.Stock Pay Later (MTF). m.Stock provides 75% funding in Reliance Industries Ltd.
In the above case, since the funding amount is above ₹5 crore, the applicable interest rate will be 6.99% p.a. Now, suppose you hold this position for one year wherein the stock gains 20% and moves to ₹2,808. The market value of your position would now be ₹8.42 crore (₹2,808 x 30,000 shares = ₹8,42,40,000) and the profit would be ₹1.40 crore.

With MTF from m.Stock, you can take a leveraged position of up to 80% of your total trade value

  • Available Margin₹1.75 crore
  • m.Stock Pays₹5.26 crore
  • You can buy stocks worth₹7.02 crore
  • Interest rate
    applicable6.99%

  • Interest charged during this 1 year @ 6.99% would be ₹36,80,235 (₹5,26,50,000 x 6.99% x 365/ 365) and your net profit would be ₹1,03,59,765 (₹1,40,40,000 - ₹36,80,235).

  • If you had not used Pay Later (MTF), you could have bought only 7,500 shares. In this case, even after a 20% gain, the market value of the position would be ₹2,10,60,000, generating a profit of ₹35,10,000. By opting for MTF, you would have made an additional profit of ₹68.49 lakhs!

*The mentioned % is only for reference. Actual value may vary based on the stock selection.

Benefits of Pay Later (MTF)

Here are some of the advantages of using the Pay Later (MTF)

Enhanced Buying Capability

You can buy up to 80% more than the available fund balance in your trading account using the Pay Later (MTF) Facility.

Low Cost

You can take the advantage of margin funding to trade in larger quantities by paying the low interest cost and brokerage charge of ₹5.

Higher Net Returns

As you pay only 20% of the total trade value while the broker funds the balance 80%, it results in higher net Return on Investment (ROI).

Fills Liquidity Gap

Traders often lose out on great short-term buying opportunities due to lack of funds. This gap can be filled with the Pay Later (MTF)Facility.

How is m.Stock Pay Later (MTF) Unique?

 Featuresm.StockIndustry
 1 Interest rate0.0192% - 0.0411% per day Up to 0.0493% per day
 2 Holding PeriodUnlimited365 days
 3 Funding %Up to 80%50% - 70%
 4 Pledge charges₹32Up to ₹35
 5 Subscription Charges₹0Up to ₹10,000
 6Hidden ChargesNo hidden chargesOther charges

FAQs

What are the advantages of using the Pay Later (MTF) facility?

With the Pay Later (MTF) facility, you can generate short-term profits by pledging the same shares. You can maximise your gains with the leveraged positions. While MTF trading can be advantageous in more than one way, you must gauge your risk appetite and follow risk management.

What is the “Required Margin” in MTF trading?

The Required Margin in MTF trading is the minimum amount of margin that you need to pay for entering into the trade. For example, if the broker offers an 80% margin of the total trade value, then the balance of 20% that you pay is termed the ‘Required Margin’. The required margin must be maintained at all times to avoid auto square-off of your position.

What is the minimum interest amount charged on margin trading?

m.Stock Pay Later (MTF) has one of the lowest interest rates starting at 0.0192% per day for funding above ₹5 crore. For funding up to ₹25 lakh, 0.0411% per day interest & above ₹25 lakh to ₹5 crore, 0.0274% per day interest is applicable. Apart from MTF interest, no subscription fees is charged on MTF trades conducted at m.Stock.

How is interest calculated in MTF?

In MTF, interest will be calculated on the gross funded amount for the number of days you hold the position open. So, if your funding amount is Rs 25 lakhs and you hold the position for 2 months, then the applicable 0.0411% per day interest rate will be charged for 2 months on a pro-rata basis.

How does m.Stock charge interest on availing Pay Later (MTF)?

With m.Stock Pay Later (MTF), interest will be charged for the gross funded amount for the number of days that you hold the position.
Note : Securities shown above are only for illustrative purposes and not recommendatory in nature. The data represents best/cumulative figures till date.