Calculating your total brokerage is straightforward once you know the Brokerage formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Brokerage Calculator.
What is Brokerage?
The Brokerage calculation tells you your total brokerage from a few simple inputs. The figure you are solving for here is the total brokerage, expressed in INR.
The Brokerage formula
The core formula is:
Total brokerage = (Buy turnover + Sell turnover) × Brokerage rate ÷ 100Here is what each input means:
- Buy turnover — a money amount. Example: ₹1,00,000.
- Sell turnover — a money amount. Example: ₹1,10,000.
- Brokerage rate — a percentage, such as an annual rate. Example: 0.05%.
How to calculate it step by step
- Write down the buy turnover (for example, ₹1,00,000).
- Write down the sell turnover (for example, ₹1,10,000).
- Write down the brokerage rate (for example, 0.05%).
- Apply the formula above to get your total brokerage.
- Double-check the result with the Brokerage Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Buy turnover | ₹1,00,000 |
| Sell turnover | ₹1,10,000 |
| Brokerage rate | 0.05% |
| Total brokerage | ₹105.00 |
| Net profit after brokerage | ₹9,895.00 |
With buy turnover of ₹1,00,000, sell turnover of ₹1,10,000 and brokerage rate of 0.05%, the total brokerage works out to ₹105.00.
Example 2
With buy turnover of ₹2,00,000, sell turnover of ₹1,10,000 and brokerage rate of 0.05%, the total brokerage works out to ₹155.00.
| Result | Value |
|---|---|
| Total brokerage | ₹155.00 |
| Net profit after brokerage | -₹90,155.00 |
Example 3
With buy turnover of ₹50,000, sell turnover of ₹1,10,000 and brokerage rate of 0.05%, the total brokerage works out to ₹80.00.
| Result | Value |
|---|---|
| Total brokerage | ₹80.00 |
| Net profit after brokerage | ₹59,920.00 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Brokerage Calculator does it instantly, for free, with the formula and a worked example built in.
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