Margin Call Calculator
Calculate the price at which a margin call will be triggered based on account value, margin loan, and maintenance requirement.
Margin Call Price
A margin call occurs when your account equity falls below the maintenance margin requirement. The broker demands you deposit more funds or sell securities.
Margin Call Price = Initial Price × (1 - Initial Margin) / (1 - Maintenance Margin)
Or equivalently:
Margin Call Price = Loan Amount / (Shares × (1 - Maintenance Requirement))
Key terms:
- Initial Margin: Typically 50% (Reg T requirement) — you borrow up to half the purchase price
- Maintenance Margin: Usually 25%–40% depending on the broker
- Equity: Current value of securities minus margin loan
Example: You buy $20,000 of stock with $10,000 cash and $10,000 margin loan. With 25% maintenance requirement, a margin call triggers when the stock drops to $13,333.
What happens during a margin call:
- You must deposit additional cash or securities
- Or the broker may liquidate your positions without notice