Margin Call Calculator
Buying on margin lets you leverage your capital, but it comes with risk. This calculator helps you understand maintenance requirements, find your margin call price, and determine what action to take if a margin call hits.
What is buying on margin?
Buying on margin means borrowing money from your broker to purchase securities. The Federal Reserve's Regulation T allows investors to borrow up to 50% of a security's purchase price (the initial margin requirement). After purchase, your broker sets a maintenance margin requirement — typically 25% — which is the minimum equity you must maintain in the position.
If your equity falls below the maintenance requirement (because the stock price drops), your broker issues a margin call demanding you deposit additional cash or sell securities to cover the shortfall.
How to avoid margin calls: Monitor your positions regularly, keep a cushion above the maintenance requirement, and avoid over-leveraging in volatile stocks. Use this calculator to stress-test your positions before buying on margin.
Margin Call Calculator — Maintenance Requirement & Margin Call Price
Free margin call calculator. Calculate maintenance margin requirements, margin call price, and how much to deposit or how many shares to sell to avoid a margin call.
Equity vs Loan
Price Scenario Analysis
| Scenario | Price | Position Value | Equity | Margin % | Status |
|---|---|---|---|---|---|
| Current | $100.00 | $100,000.00 | $50,000.00 | 50.00% | ✓ Safe |
| -5% | $95.00 | $95,000.00 | $45,000.00 | 47.37% | ✓ Safe |
| -10% | $90.00 | $90,000.00 | $40,000.00 | 44.44% | ✓ Safe |
| -15% | $85.00 | $85,000.00 | $35,000.00 | 41.18% | ✓ Safe |
| -20% | $80.00 | $80,000.00 | $30,000.00 | 37.50% | ✓ Safe |
| -25% | $75.00 | $75,000.00 | $25,000.00 | 33.33% | ✓ Safe |
| -30% | $70.00 | $70,000.00 | $20,000.00 | 28.57% | ⚡ Close |
| -35% | $65.00 | $65,000.00 | $15,000.00 | 23.08% | ⚠ Margin Call |
| -40% | $60.00 | $60,000.00 | $10,000.00 | 16.67% | ⚠ Margin Call |
| -45% | $55.00 | $55,000.00 | $5,000.00 | 9.09% | ⚠ Margin Call |
| -50% | $50.00 | $50,000.00 | $0.00 | 0.00% | ⚠ Margin Call |