Margin Call Calculator
The price the call comes at, and what it takes to clear it.
Work out Margin Call. The price the call comes at, and what it takes to clear it. Regulatory minimums are defaults you can change, never assertions.
FINRA's floor is 25%. Brokers commonly require 30–40%, more on volatile names.
Brokers may liquidate without notice and without letting you choose which holdings go — the call is a courtesy, not an obligation. House requirements also change without warning, so a position that is comfortable today can be in a call tomorrow with no price move at all.
Margin call price
$66.67
33.3% below today's price
The call price depends on the loan and the requirement, not on what you paid. The same $10,000.00 loan on this many shares calls at $66.67 whether you bought at $100.00 or at three times that.
How the Margin Call Calculator works
A margin call arrives when equity falls below the maintenance requirement, and the price it happens at depends on the loan and that requirement — not on what you paid. That last part surprises people: a position bought at $100 and one bought at $250 with the same loan get their call at the identical price. This gives the price, the cushion before it, and what clears the call once it arrives.
Also known as: margin call price calculator · maintenance margin calculator · margin requirements calculator · short margin call calculator
The calculation itself
Equity is market value less the loan, and it must stay at or above the maintenance fraction of market value. Writing that out: (MV − loan) ÷ MV ≥ m, which rearranges to MV ≥ loan ÷ (1 − m).
Divide by the share count and you have the price. That is the whole derivation.
Notice what is absent from it: the price you paid. A margin call depends on the loan and the requirement, nothing else.
In practice
200 shares at $100 is a $20,000 position. With a $10,000 loan, equity is $10,000 — half the position, comfortably above a 25% requirement.
The call triggers when the position falls to $10,000 ÷ 0.75 = $13,333.33, which is $66.67 a share. That leaves 33.3% of cushion.
Now the part that surprises people. Buy the same 200 shares at $250 with the same $10,000 loan and the call still comes at $66.67. Your entry price never enters the equation — only what you owe and what fraction the broker requires.
At $60 the position is worth $12,000 against a $10,000 loan: equity is $2,000, or 16.7%, and the call has arrived. Restoring 25% needs $1,000 of cash, or selling about 56 shares.
Why selling is the expensive fix
Depositing cash and selling shares both clear the call, but they are not equivalent. Cash keeps the position intact so a recovery still belongs to you. Selling crystallises the loss at the lowest point of the drawdown.
That is the mechanism by which leverage converts a temporary decline into a permanent loss. The position that would have recovered was sold to satisfy a requirement, at a price set by the requirement rather than by any view about the asset.
It compounds across a market, too. Falling prices trigger calls, calls force selling, selling pushes prices lower. Nothing about that loop requires anyone to change their mind about what the assets are worth.
Where the figure deceives
The requirement is not fixed. Brokers raise house requirements on volatile or concentrated positions, sometimes overnight, and a holding that was comfortable can be in a call the next morning with no price move at all. Any cushion calculated from today's requirement assumes today's requirement.
Brokers may also liquidate without notice, and without letting you choose which holdings go. The call is a courtesy; the agreement you signed generally permits selling first.
This models a single long position. Real accounts net across holdings, apply different requirements to different securities, and exclude some from margin entirely — so an account-level call can arrive on a position that looks fine in isolation.
Acting on it
Calculate the call price when you open the position, not when the market is falling. It is the one number that decides whether you can sit through a drawdown.
Ask your broker for the house maintenance requirement on the specific security rather than assuming the 25% floor. On concentrated or volatile names it is frequently double that.
Keep cash uncommitted against the possibility. A call met from reserves is an inconvenience; a call met by selling is a realised loss.
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
At what price do I get a margin call?
Where the loan divided by one minus the maintenance fraction equals the position value. On a $10,000 loan at a 25% requirement, the position must stay above $13,333, so 200 shares must hold $66.67. Your purchase price is nowhere in that calculation.
What is maintenance margin?
The minimum share of the position that must be your own equity. FINRA's floor is 25%, but brokers commonly require 30% to 40%, and considerably more on volatile or concentrated holdings.
How do I meet a margin call?
Deposit cash, deposit securities, or sell part of the position. Selling is the expensive option because it locks in the loss at the worst moment, which is the mechanism that turns a drawdown into a permanent one.
Can a broker sell my position without asking?
Yes. Margin agreements generally permit liquidation without notice and without your choosing which holdings go. The call is a courtesy rather than an obligation, and in fast markets it is often skipped.
Can the requirement change while I hold the position?
Yes, and it frequently does — on a single volatile stock a broker may raise its house requirement overnight. A position that was comfortable can be in a call the next morning with no price move at all.
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