How to Use the Dhan Brokerage Calculator for Accurate Estimates?

During the past few years, stock market participation in India has increased significantly. According to the Economic Survey 2023-24, the number of retail investors has reached over 9.5 crore.🚀

However, the survey also stated that "the expectation of higher returns without real market conditions is a matter of concern". Earning money by investing in securities may seem like easy money, but you may also lose all your money if you are not careful. Besides market risk, another factor that directly affects your profit is brokerage fees—the cost you pay your broker for executing trades. 

Naturally, brokerage fees can significantly impact returns. Even minimal fees can quickly pile up and eat into your profits, especially for frequent traders. The equation is simple: 

High Brokerage = Low Profits 

Remember that investing smartly is about more than making the right trades. It's also about managing costs and risks efficiently. And it's simple! Tools like the Dhan Brokerage Calculator make it easy to see exactly what each trade will cost. With that info in hand, you can make smarter, more informed investment choices.

Coverings:

• Dhan Charges
• Dhan Brokerage Charges
• Dhan Brokerage Calculator
  • For Futures
  • For Options
• Dhan vs Zerodha: Brokerage Comparison

Dhan was established in 2021. Despite being new to the game, it has quickly made a name for itself in the market. Today, it has an active client base of 7 lakh+ users. It offers a user-friendly experience, and you can trade in multiple asset classes using the platform, including:

• Stocks
• Commodities
• Futures
• Options
• Mutual Funds
• IPO
• Exchange Traded Funds (ETFs)
• New Fund Offer (NFO)

Is this enough for you to choose Dhan as your broker? No! 

Before making any commitments, you need to know Dhan's brokerage charges and how they are calculated. Let's get on with it!

Dhan Charges

Category	Charges
Account Opening Fees	₹0
Account Maintenance Charges (AMC)	₹0

This means that having a Demat account on Dhan does not cost you anything. Brokerage, however, is completely different. 

Dhan Brokerage Charges

Dhan's website states, "No hidden charges, ever." The platform is investor-focused and offers simplicity and affordability. 
Want to know the specifics of what Dhan charges for all trades? Here is an overview for you:

Category	Equity Delivery	Equity Intraday	Futures	Options
Brokerage	₹0	0.03% or ₹20 (whichever is lower)	0.03% or ₹20 (whichever is lower)	₹20
Exchange Charges	NSE: 0.00297% BSE: 0.00375%	NSE: 0.00297%  BSE: 0.00375%	NSE: 0.00173% BSE: 0.00%	NSE: 0.03503%  BSE (Index): 0.0325%  BSE (Stock): 0.005%
Securities Transaction Tax (STT)	Buy: 0.1% Sell: 0.1%	0.025% (Sell)	0.02% (Sell)	0.1% (Sell)
SEBI Charge	0.0001% of turnover	0.0001% of turnover	0.0001% of turnover	0.0001% (on options premium)
GST	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax
Stamp Duty	0.015% (Buy) (of turnover)	0.003% (Buy) (of turnover)	0.002% (Buy) (of turnover)	0.003% (Buy) (on options premium)
Contribution to IPFT	0.0001% of turnover	0.0001% of turnover	0.0001% of turnover	0.0005% (on options premium)

Now that you know the different applicable charges, let's move on to understanding how these are calculated.

Dhan Brokerage Calculator

Before you enter into a trade, you can find out how much it’ll cost you by using the Dhan Brokerage Calculator. Let's figure out how the calculator works:

1. For Futures 

For a better understanding of the calculation, let's use an example. Suppose you are selling a futures contract of 40 shares worth ₹1,200 each on the NSE. Then this is how much brokerage you will end up paying: 

Category	Futures
Turnover	₹48,000
Brokerage	₹14.4
Exchange Charges	₹0.83
Securities Transaction Tax (STT)	₹9.6
SEBI Charges	₹0.048
GST	₹2.75
Contribution to IPFT	₹0.048
Total Charges	₹27.68
Total P&L	₹47,972.32

Let's break down the calculation of these charges: 

Category	Calculation	Futures
Turnover	40 x ₹1,200	₹48,000
Brokerage*	0.03% x Turnover or ₹20	0.03% x ₹48,000 = ₹14.4 or ₹20
Exchange Charges	0.00173% x Turnover	0.00173% x ₹48,000 = ₹0.83
STT	0.02% x Turnover	0.02% x ₹48,000 = ₹9.6
SEBI Charges	0.0001% x Turnover	0.0001% x ₹48,000 = ₹0.048
GST	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax	18% ( ₹14.4 + ₹0.83 + ₹0.048 + ₹0.048) = ₹2.75
Contribution to IPFT	0.0001% x Turnover	0.0001% x ₹48,000 = ₹0.048
Total Charges	Brokerage + Exchange Charges + STT + SEBI Charges + GST + Contribution to IPFT	₹14.4 + ₹0.83 + ₹9.6 + ₹0.048 + ₹2.75 + ₹0.048 = ₹27.68
Total P&L	Turnover - Total Charges	₹48,000 - ₹27.68 = ₹47,972.32

Note: Applicable brokerage is ₹14.4 since it is lower than ₹20.

2. For Options

Let's use an example so you can better understand how brokerage is calculated for options contracts. Suppose you are selling an options contract of 30 lots worth ₹1,700 each on the NSE. Then this is how much brokerage you will end up paying: 

Category	Options
Options Premium	₹51,000
Brokerage	₹20
Exchange Charges	₹17.86
Securities Transaction Tax (STT)	₹51
SEBI Charges	₹0.051
GST	₹6.87
Contribution to IPFT	₹0.255
Total Charges	₹96.036
Total P&L	₹50,904

Let's break down the calculation of these charges: 

Category	Calculation	Options
Turnover	30 x ₹1,700	₹51,000
Brokerage	Flat ₹20	₹20
Exchange Charges	0.03503% x Options Premium	0.03503% x ₹51,000 = ₹17.86
STT	0.1% x Options Premium	0.1% x ₹51,000 = ₹51
SEBI Charges	0.0001% x Options Premium	0.0001% x ₹51,000 = ₹0.051
GST	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax	18% ( ₹20 + ₹17.86 + ₹0.051 + ₹0.255) = ₹6.87
Contribution to IPFT	0.0005% x Options Premium	0.0005% x ₹51,000 = ₹0.255
Total Charges	Brokerage + Exchange Charges + STT + SEBI Charges + GST + Stamp Duty +  Contribution to IPFT	(₹20 + ₹17.86 + ₹51 + ₹0.051 + ₹6.87 + ₹0.255) = ₹96.036
Total P&L	Options Premium - Total Charges	₹51,000 - ₹96.036 = ₹50,904

Dhan vs Upstox: Brokerage Comparison

Brokerage charges have two basic parts: brokerage fees, which can vary, and statutory charges, which are mostly fixed for all transactions. 

Hence, brokerage fees make all the difference when it comes to savings while executing trades. So, before you open a Demat account, you need to have a thorough understanding of these charges. This way, you will be able to manage your costs effectively and earn higher profits. Here is an example comparing Dhan vs Upstox to help you see the picture more clearly.

Imagine you are buying 40 equity shares worth ₹1,500 each on the NSE for delivery. Now, here is how much brokerage you will end up paying:

• Total Turnover = No. of shares x Price per share = 40 x ₹1,500 = ₹60,000
• Exchange = NSE

Category	Dhan	Upstox
Account Opening	₹0	₹0
AMC	₹0	₹0
Brokerage	₹0	₹20
Exchange Charges	0.00297% = ₹1.78	0.00297% = ₹1.78
STT	0.1% = ₹60	0.1% = ₹60
SEBI Charges	0.0001% = ₹0.06	0.0001% = ₹0.06
GST	18% (₹0 + ₹1.78 + ₹0.06 + ₹0.06 ) = ₹0.342	18% (₹20 + ₹1.78 + ₹0.06 + ₹0.06 ) = ₹3.942
Contribution to IPFT	0.0001% = ₹0.06	0.0001% = ₹0.06
Stamp Duty	0.015% = ₹9	0.015% = ₹9
Total Charges	₹71.424	₹94.842
Net Debit	Total Turnover + Total Charges = ₹60,000 + ₹71.242 = ₹60,071.242	Total Turnover + Total Charges = ₹60,000 + ₹94.842 = ₹60,094.842

When you compare the brokerage charges of Dhan and Upstox for equity delivery, you'll see that Dhan costs less than Upstox for the same trade. Can you imagine paying ₹20 extra for every trade? 

Sure, it seems minimal now, but assuming you buy shares worth ₹60,000 every day for 252 days a year, you'll end up losing more than ₹5,000. It'll be even worse if you make multiple trades a day. That's why you need to pay extra attention to brokerage charges.
Considering the brokerage factor, Dhan comes out on top. However, that's just one factor you should look into when choosing a broker. Compare all the features, offerings and prices associated with Dhan and Upstox here!

Conclusion

Dhan is a cost-effective platform offering a variety of investment options. It is also convenient and has multiple platforms, including a mobile app and a web trading platform. It provides quick resolutions with 24/7 customer care. Additionally, it provides a 50% discount on brokerage fees for women investors.

It seems like Dhan has many appealing factors, making it worthy of consideration. However, before you make your decision, find out exactly how much your next trade will cost. Visit the Dhan Brokerage Calculator on Finology Select and enter your next trade with a full understanding of brokerage charges.