MTF Calculator
Calculate your leverage and upfront margin instantly with our MTF (Pay Later) Calculator. Discover your true buying power — see how much 5paisa funds for each stock and ETF.
-Exposure
Note : The actual payable amount may vary, as additional charges such as brokerage, STT, transaction fees, etc. will be included at the time of placing an order.
What is Pay Later (MTF) Calculator?
With 5paisa’s Pay Later MTF Calculator, you can easily determine the portion of investment you need to contribute (cash + collateral), while we fund the remaining amount....
Understanding MTF with an Example
Let’s say Ms Sunita aims to invest ₹ 1 lakh in stocks, but she only has ₹ 20,000 available.
Scenario 1 — Without MTF:
- She invests her own ₹ 20,000.
- If the stock value rises by 10%, her investment grows to ₹ 22,000 (₹ 20,000 × 1.10).
- Her profit: ₹ 2,000 (₹ 22,000 − ₹ 20,000).
Scenario 2 — With MTF:
- Ms Sunita uses her ₹ 20,000 as margin and the broker extends up to 4× leverage, i.e., the broker adds ₹ 80,000, making the total investment ₹ 1 lakh.
- Suppose the broker charges about 12 % annual interest; for one month on ₹ 80,000 that’s ₹ 800 (80,000 × 1 % assuming 1/12 of 12 %).
- If the stock rises by 10%, the total position becomes ₹ 1,10,000 (₹ 1 lakh × 1.10).
- Gross profit: ₹ 10,000 (₹ 1,10,000 − ₹ 1,00,000).
- After paying interest (₹ 800), net profit: ₹ 9,200.
- Compare to scenario 1: Profit jumps from ₹ 2,000 to ₹ 9,200 using MTF.
Key Points to Note
- MTF amplifies buying power: you invest a smaller own amount, and borrow the rest.
- While returns increase in favourable movements, risks also amplify: adverse price moves will magnify losses similarly.
- Interest/costs apply for funds borrowed — these must be factored when calculating net gain.
- Tools like the MTF Calculator help you plug in required margin, borrowed amount, interest, holding period and breakeven levels.
Interest Rates asscociated with Paylater (MTF)
Below is the summary of Interest Rates levied on Paylater(MTF) across various funding slabs:
| Funded Amount | Interest Rate (per day) | Annual Interest Rate |
|---|---|---|
| 0 to 1 lakh | 0.026% | 9.50% |
| >1 lakh to 5 lakhs | 0.034% | 12.50% |
| >5 lakhs to 1 Cr | 0.042% | 15.50% |
Frequently Asked Questions
The MTF Calculator helps you estimate how much you need to pay upfront (cash + collateral) and how much funding 5paisa will provide when using the Pay Later (MTF) facility for a specific stock or ETF.
Simply select the stock or ETF you want to trade, enter the quantity and the calculator will show the total trade value, how much margin you need to bring in (cash + collateral), and how much funding 5paisa will provide under the Pay Later (MTF) facility.
MTF allows you to buy stocks by paying only a part of the total amount upfront. The rest is funded by 5paisa, giving you leverage to take larger positions.
The margin is based on the stock selected, its exchange margin requirement, and 5paisa’s approved funding limits. The calculator shows both your portion and the portion funded by 5paisa.
No, only stocks and ETFs approved under 5paisa’s MTF list are supported. The calculator reflects this list.
The results are indicative and based on current margin requirements. Final margin and funding eligibility are subject to live market conditions and internal risk checks.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..