FullCalculator

Margin Loan Calculator

Margin Loan Cost

Calculate margin loan interest and margin call levels

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Formula

Monthly Interest = Borrowed x (Rate / 12). Margin Call Level = Borrowed / (1 - Maintenance%).

Frequently Asked Questions

What is a margin loan?
A margin loan lets you borrow money from your broker using your investment portfolio as collateral. You can use the funds to buy more securities or for other purposes. Interest accrues daily on the borrowed amount.
What is a margin call?
A margin call occurs when your equity falls below the maintenance margin requirement (typically 25-40%). You must deposit more cash or securities, or the broker may sell your holdings to meet the requirement.
Is margin interest tax deductible?
Margin interest is generally tax-deductible up to the amount of net investment income you earn. You must itemize deductions to claim it. Consult a tax professional for your specific situation.

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