Margin & Leverage Calculator
See buying power, margin used, the price drop that triggers a margin call, and how leverage changes your return on equity. Educational only, not trading or investment advice.
Quick answer
Leverage is position value divided by account equity, and borrowed amount is position value minus equity. Buying power = equity / initial margin %. A margin call comes when equity over position falls to maintenance margin.
Margin & Leverage Calculator
Change in the position's price.
Buying Power (max position)
—
Margin Used (initial)
—
Leverage
—
Borrowed Amount
—
Price Drop to Margin Call
—
Return on Equity (leveraged)
—
Return on Equity (no leverage)
—
Leveraged Profit / Loss
—
Borrowing Cost
—
Educational only. This is not trading or investment advice. Leveraged positions can lose more than the equity you put in.
Return on Equity by Price Move
| Price move | Leveraged P&L (₹) | Leveraged ROE | Unleveraged ROE | Margin call? |
|---|
Assumptions & method
- Leverage = position value ÷ equity; borrowed amount = position value − equity. Buying power = equity ÷ initial margin %.
- Margin used = position value × initial margin %. A margin call occurs when (position − loan) ÷ position falls to the maintenance %, i.e. after a drop of 1 − loan ÷ (position × (1 − maintenance %)).
- Leveraged P&L = position value × price move − borrowing cost; ROE = P&L ÷ equity. Unleveraged ROE assumes the same equity is invested with no borrowing and equals the price move.
- Borrowing cost = borrowed amount × annual rate × days ÷ 365 (simple interest, no compounding, rate fixed). The table assumes a long position only.
- Not included: commissions, taxes, dividends, intraday margin rules, broker-specific haircuts or forced liquidation prices. Not trading or investment advice.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How leverage changes risk and return
Margin lets you hold a larger position than your equity by borrowing the difference. A given price move then has a bigger effect on your own capital, in both directions, and you pay interest on the loan. The broker requires a minimum equity cushion, so if the position falls far enough you face a margin call. This calculator takes your equity, position size or leverage and margin percentages, and shows buying power, margin used, the drop that triggers a margin call, and your return on equity with and without leverage after borrowing costs. It models a simple long position only.