# A Quick Guide on Brokerage Calculator

## What Is the Formula to Calculate Brokerage?

To calculate brokerage, traders have to use the formula mentioned below.

Brokerage = Number of bought/sold shares x Price of one unit of stock x brokerage percentage.

To understand the brokerage formula wholly, one has to solve this with an example. However, the task becomes easier as individuals now no longer need to do this manually. All they need to do is put the data in the respective fields, and results will automatically appear on the screen. For example-

Suppose Ms. Kavita purchases 20 shares of Tata Motors at ₹ 2,000 each and decides to sell those shares at ₹ 2,100 within 10 days.

For this, she contacts a broker named Mr. Jain, who charges 0.5% as brokerage charges. To determine the brokerage charges, Ms Kavita has to find out the total trade value and then the brokerage charge.

Refer to the table mentioned below to get a clear idea,

 Pointers Values Purchase (20 shares at ₹ 2,000/each) 20 x 2000 = 40,000 Sell (20 shares at ₹ 2,100/each) 20 x 2100 = 42,000 Brokerage Charge 0.5% Total Trade Value (20 x 2000) + (20 x 2100) (40,000 + 42,000) = ₹ 82,000 Brokerage Charge 82,000 x 0.5% ₹ 410

Thus, it is clear that Ms Kavita will have to pay ₹ 410 as a brokerage charge.

To find out brokerage charges through the calculator, investors have to fill out different options.

• Such traders may find to choose from options including equity delivery, equity intraday, futures, and options.
• Next, they have to choose the order type – ‘buy’ or ‘sell’.
• After that, they have to enter the quantity of the asset they wish to purchase or sell, followed by the price at which they want to conduct trading.
• At last, they have to choose the exchange in which they are planning to complete the transaction and click on the ‘Calculate’ button.

Brokerage calculators not only ease the calculation process but also offer various benefits to traders. Read the following sections to know about these in detail!