ConverterHub

Margin Call Price Calculator

Know the exact price where your broker calls.

Result

$66.67
33.33%
$50.00

How it is calculated

This applies to a long stock position bought on margin. Inputs are the purchase price per share and the initial and maintenance margin as percentages of the position value. Your equity per share is price minus the loan, and the loan stays fixed at loan = P0 × (1 − initial%). A call is triggered when equity falls to the maintenance share of the current price: P* = P0 × (1 − initial%) / (1 − maintenance%). The tool also shows the percentage drop from purchase, (P0 − P*) / P0. It ignores interest on the loan, dividends and fees. Initial margin must be above 0 and up to 100, maintenance 0 to under 100. Brokers' house requirements vary and can be higher than the legal minimum.

Worked example

Buy at $100 with 50 % initial margin and a 25 % maintenance requirement. Your loan is 100 × (1 − 0.50) = $50.00 per share. Margin call price = 100 × 0.50 / 0.75 = $66.67. That is a fall of (100 − 66.67) / 100 = 33.33 % from the purchase price. Check: at $66.67 your equity is 66.67 − 50 = 16.67, which is exactly 25 % of 66.67.

Try this example →

Common mistakes

  • Entering initial margin as the borrowed share instead of the share you pay yourself: 50 % is the same both ways, but with 30 % you would get a different loan size.
  • Using the maintenance figure of a different broker or product: house requirements are often higher than the regulatory minimum.
  • Entering an initial margin below the maintenance margin: the call price then comes out above the purchase price, meaning the position is already under the requirement.
  • Expecting this to cover short positions: the formula is for long positions only.
  • Forgetting that accrued loan interest raises the loan over time, so a real call comes earlier than shown.

About this calculator

When you buy stock on margin, your broker lets you borrow part of the purchase price against your existing equity — but if the share price falls far enough that your equity as a percentage of the position drops below the broker’s maintenance margin requirement, you get a margin call demanding you deposit more cash or sell. For a long position, the formula is margin call price = purchase price × (1 − initial margin %) / (1 − maintenance margin %), which finds the exact price where your equity percentage hits the maintenance floor.

Margin traders and brokers both watch this number closely: traders use it to know in advance exactly how far a stock can drop before they’re forced to act, and brokers set it as an automated trigger for issuing calls or, if the trader doesn’t respond, force-liquidating the position. Maintenance margin requirements are typically set by exchange rules (FINRA’s minimum is 25% in the US) but many brokers require higher house minimums, especially for volatile stocks.

Was this helpful?

You can pick up to 3 reactions.

Comments

  • Be the first to comment.

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators