How to calculate brokerage?
Traders use intraday and delivery brokerage calculators to estimate the cost of each trade before placing it. Brokerage is the fee a broker collects for executing your trade, and it's payable on both the buy and the sell leg. Some brokers waive one side, but most charge a set percentage (or a flat fee) on the trade value. The core formula is:
Brokerage = Quantity × Price per share × Brokerage rate
(the rate applied depends on your subscription pack)
Example: Calculating brokerage charges
Suppose you purchase and later sell shares through a broker. The brokerage charged is 0.03% per executed order.
Trade details
- Buy price = ₹750 per share
- Sell price = ₹790 per share
- Quantity = 80 shares
Step 1: Calculate the trade value
- Buy value = ₹750 × 80 = ₹60,000
- Sell value = ₹790 × 80 = ₹63,200
- Total turnover = ₹1,23,200
Step 2: Calculate brokerage
- Buy-side brokerage = 0.03% × ₹60,000 = ₹18
- Sell-side brokerage = 0.03% × ₹63,200 = ₹18.96
Total brokerage = ₹36.96
Step 3: Add other applicable charges (illustrative)
Charge type | Amount |
Securities Transaction Tax (STT) | ₹63.20 |
Exchange transaction charges | ₹3.80 |
SEBI turnover charges | ₹1.20 |
GST (18% on brokerage and exchange charges) | ₹7.34 |
Stamp duty | ₹3.60 |
Total other charges ≈ ₹79.14
Step 4: Calculate the net profit
- Gross profit = ₹63,200 − ₹60,000 = ₹3,200
- Total charges = ₹36.96 + ₹79.14 = ₹116.10
Net profit = ₹3,200 − ₹116.10 = ₹3,083.90
Note: This example is for illustration only. Actual brokerage, taxes, and other charges depend on your broker's pricing, the type of trade, and the applicable regulatory charges at the time of the transaction.
Delivery vs intraday brokerage charges for equity trades
Charges | Equity (delivery) | Equity (intraday) |
Brokerage | 0.2% | 0.02% |
Transaction charges | NSE: 0.002970% on buy and sell value. BSE: 0.00345% on buy and sell value. | NSE: 0.002970% on buy and sell value. BSE: 0.00345% on buy and sell value. |
Clearing charges | 0.0025% on buy and sell value | 0.0025% on buy and sell value |
GST | 18% on brokerage, transaction charges, SEBI charges and clearing charge | 18% on brokerage, transaction charges, SEBI charges and clearing charge |
Securities transaction tax | 0.1% on buy and sell value | 0.025% on the sell side value |
SEBI turnover fees | 0.0001% on buy and sell value | 0.0001% on buy and sell value |
Stamp duty | 0.015% on buy side value | 0.003% on buy side value |
How to use a brokerage calculator?
Equity calculators help traders compute brokerage charges on a trade. They help reduce the manual burden and possible errors in such calculations. To gain clarity on your brokerage fees in an instant, you can use the simple and user-friendly Brokerage Calculator. Here is a step-by-step guide on using the brokerage calculator:
Step 1: Choose a subscription plan from the drop-down menu, such as Freedom or Professional.
Step 2: Select the trade segment, such as Equity Intraday, Equity Delivery, Futures, or Options.
Step 3: Enter the symbol or name of the security.
Step 4: Select the stock exchange where the security is listed.
Step 5: Select the transaction type (Buy or Sell).
Step 6: Enter the buy price.
Step 7: Enter the sell price.
Step 8: Enter the quantity.
The online trading calculator will instantly display the applicable brokerage fee, STT, GST, SEBI turn-over fees, and stamp duty charges. In fact, you can also review the break-even and net profit and loss amount on the trade. Assessing the charges levied and their impact on the overall profit/loss can help you decide if the trade is prudent.
What are the benefits of a brokerage calculator?
- Compare brokers: Easily compare fees across different trading platforms.
- Instant results: Get accurate cost estimates in seconds.
- Full cost breakdown: Includes brokerage, taxes, and other charges.
- Time-saving: Simplifies cost analysis, helping you make faster decisions.
Using a brokerage calculator can streamline your trading process and improve financial planning.
Frequently asked questions
To calculate brokerage fees, multiply the total trade value (shares × price per share) by your broker's commission rate. Flat-fee brokers charge a fixed amount per trade regardless of size. Buy-side and sell-side charges are calculated separately, and applicable taxes should be added to arrive at the final cost.
Intraday brokerage is calculated based on the total turnover (buy value + sell value) of the trade, typically ranging from 0.01% to 0.05% or a flat fee (e.g., ₹20 per executed order), whichever is lower. It is charged on both the purchase and sale sides, with additional statutory charges like GST, STT, and exchange transaction fees applying.
Commodity brokerage is calculated based on the value of your trade and your broker's brokerage plan. First, the trade value is calculated by multiplying the commodity price by the quantity traded. The broker then applies the applicable brokerage rate or fixed fee. Other charges, such as exchange transaction charges, GST, SEBI charges, stamp duty, and any other applicable statutory charges, are added to arrive at the total trading cost.
A commodity brokerage calculator does these calculations automatically, helping you estimate the total charges before placing a trade.
The brokerage fees charged for trading on both BSE anf NSE stock exchanges are the same, but the total cost and other charges might differ based on the value of stocks on different exchanges. It is important to double-check with your stockbroking firm for any additional fees or charges before you trade.
Breakeven is the point at which your total revenue equals your total costs, meaning you have neither a profit nor a loss. It is primarily calculated in two ways: by the number of units sold or by total sales revenue.
Futures brokerage is typically calculated based on the total trade value (quantity price) as a percentage, or as a flat fee per executed order. For Futures, this usually involves a fixed fee (e.g., ₹20-40 per order) or a small percentage (e.g., 0.01% - 0.05%) applied to both sides of the trade.
A brokerage rate is the fee charged by a broker for executing trades, varying by broker type (full-service vs. discount) and trade type (equity, F&O), often as a percentage of transaction value or a flat fee (e.g., ₹20 per order). Full-service brokers charge more for research (0.01-0.5%), while discount brokers offer lower rates (₹10-₹100 flat) for just trade execution, with online platforms often having zero or very low commissions, especially for certain trades like delivery.
Brokerage fees can be significantly reduced by switching to discount brokers, which offer flat-fee or zero-brokerage plans, compared to traditional full-service brokers. Other effective strategies include negotiating lower commission rates for high-volume trading, selecting plans with minimal or zero maintenance charges, and choosing direct mutual funds over regular plans.
Yes, brokerage calculators are almost entirely free to use online, provided by most stockbrokers and financial platforms to help investors calculate trading costs, including GST, Securities Transaction Tax (STT), and stamp duty. They are accessible to anyone to estimate brokerage for equity, F&O, and commodity trades.
