What is a margin call?

A margin call occurs when the equity in your margin account falls below the broker's maintenance margin requirement. The broker will then require you to deposit additional funds or securities, or liquidate part of your position to restore the required equity level.

What is maintenance margin?

Maintenance margin is the minimum percentage of equity you must maintain in a margin account relative to the total market value of the securities held. FINRA requires a minimum of 25%, but most brokers set it higher — commonly 30% to 40%.

How is the margin call price calculated?

Margin Call Price = Loan Amount / (Number of Shares × (1 − Maintenance Margin %)). For example, if you borrowed $5,000, hold 100 shares, and your maintenance margin is 30%, the trigger price is $5,000 / (100 × 0.70) = $71.43.

What happens if I cannot meet a margin call?

If you cannot deposit additional funds or securities in time, the broker has the right to sell securities in your account — without your approval — to bring the account back to the required maintenance level.

Does this calculator account for interest on the margin loan?

No. This calculator focuses on the margin call trigger price based on equity. Margin interest accrues separately and reduces your equity over time, effectively raising your margin call price gradually.

Margin Call Calculator

Name: Margin Call Calculator
Availability: InStock
Author: Nham Vu

Find the exact price at which your broker will issue a margin call on a leveraged position.

Position Details

Purchase Price per Share ($)

Number of Shares

Margin Loan Amount ($)

The amount borrowed from your broker.

Maintenance Margin Requirement (%)

Typically 25%–40%. Check with your broker.

Enter your position details and click Calculate.

Summary