📉 Margin Call Calculator
Compute the trigger price given initial and maintenance margin requirements.
Loan Amount
$2500.00
Margin Call Trigger Price
$33.33
How to Use This Calculator
Provide the number of shares, the initial purchase price, your initial margin (equity as a percentage of the purchase), and the broker’s maintenance margin. The tool computes the loan you took to finance the purchase and the stock price at which your equity falls to the maintenance requirement. If the market price drops to or below this trigger, you can receive a margin call and must deposit funds or liquidate holdings to restore compliance. This version models a long stock buy financed with a margin loan and ignores interest accrued and additional deposits after purchase for clarity.
Formula
Loan = N·P₀·(1 − m₀)
P* = Loan / (N·(1 − m_(maint)))
Where mâ‚€ is initial margin, m_(maint) is maintenance margin.
Frequently Asked Questions
Does this include interest on the loan?
No. The trigger calculation uses the snapshot relationship between equity and market value. In practice, accrued interest increases the loan balance over time and can raise the trigger price slightly.
What about short sales?
Short sales follow different margin rules and require modeling proceeds, collateral, and borrowing costs. This simple tool focuses on a long position purchased on margin.