Margin Calculator
Calculate your total buying power and the amount borrowed when trading stocks on margin.
- Your Equity (Cash Deposited)$10,000.00 · 50%
- Borrowed on Margin$10,000.00 · 50%
Your $10,000.00 in cash controls $20,000.00 in buying power — the rest, $10,000.00, is borrowed from your broker.
- Amount Borrowed$10,000.00
Trading on margin amplifies both gains and losses, and brokers can issue a margin call requiring more cash.
About the Margin Calculator
Trading on margin means borrowing part of your position from your broker, which is why buying power ends up larger than the cash you actually deposited — and why the gains and losses that follow are calculated against that larger borrowed position, not just your own money. Treating margin buying power as if it were all your own capital is how the risk gets underestimated.
This is the calculator for working out exactly how much leverage a margin account gives you before placing a trade — how much you can actually control with a given cash deposit at your broker's margin requirement, and how much of that position is money you're borrowing rather than money you own.
The cash amount and margin terms you're testing are calculated locally in your browser. There's no account or login needed just to check the math on a trade you're sizing up.
Frequently asked questions
How does margin actually amplify gains and losses?
Because your percentage gain or loss is measured against the full position size, not just your cash deposit. A price move that would be a modest percentage change on an unleveraged position becomes a much larger percentage change on your actual equity when a portion of the position is borrowed.
What is a margin call?
It's a broker's demand for additional cash or securities when your account equity falls below a required maintenance level, usually because the position has lost value. If you can't meet it, the broker can sell your holdings without further notice to bring the account back into compliance.
What determines the margin requirement percentage?
It's set by a combination of regulatory minimums and individual broker policy, and it can vary by the specific security — more volatile or less liquid securities often carry a higher margin requirement, meaning less buying power per dollar of cash deposited.
Do I pay interest on the amount I borrow on margin?
Yes — brokers charge interest on the borrowed portion of a margin position, typically accruing daily, which is a real ongoing cost that eats into returns the longer a leveraged position is held open.
Is trading on margin a good idea for a beginner?
Generally not recommended — margin amplifies losses just as much as gains, and a bad move can wipe out your equity faster than an unleveraged position would, potentially even leaving you owing money beyond your original deposit. It's a tool typically reserved for experienced traders who understand and can tolerate that added risk.
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