Find the price at which a margin account triggers a margin call.
Please do not make financial decisions based on these results.
What is the Margin Call Calculator?
Find the price at which a margin account triggers a margin call. To use the Margin Call Calculator, enter purchase price, shares, initial margin, maintenance margin; it returns margin call price, loan amount, fall that triggers call, and shows them instantly as you type.
Where the Margin Call Calculator fits
Find the price at which a margin account triggers a margin call. The main figure it returns is the Margin call price, worked out from the values you enter.
It belongs with the other options & derivatives tools. If you are comparing options or checking a result from another angle, try the Call Option Calculator, Put-Call Parity Calculator or the Black Scholes Calculator.
How to use the Margin Call Calculator
- Enter your numbers. Start with Purchase price ($), Shares, Initial margin (%), then fill in Maintenance margin (%). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Margin call price, and the cards below show Loan amount, Fall that triggers call. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Margin Call Calculator using the default values shown in the calculator above:
Inputs
| Purchase price ($) | 80 |
|---|---|
| Shares | 500 |
| Initial margin (%) | 50 |
| Maintenance margin (%) | 30 |
Results
| Margin call price | $57.14 |
|---|---|
| Loan amount | $20,000.00 |
| Fall that triggers call | 28.57% |
With these inputs the calculator returns Margin call price: $57.14. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Purchase price ($) from 80 to 96 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Margin call price | $57.14 | $68.57 | +20% |
| Loan amount | $20,000.00 | $24,000.00 | +20% |
| Fall that triggers call | 28.57% | 28.57% | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Margin Call Calculator reports Margin call price, loan amount and fall that triggers call. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What triggers a margin call?
Account equity falling below the broker’s maintenance requirement.
Does Black-Scholes work for American options?
It prices European options. American options can be exercised early and may be worth slightly more.
Which option model is used?
The Black-Scholes-Merton model for European options, with an optional dividend yield. American options can be worth more.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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