Maintenance Margin Calculator
This calculator helps you determine if your account equity meets the brokerage's maintenance margin requirement and calculates any excess margin or margin call amount.
Enter the current market value of your securities held on margin, your brokerage's maintenance margin percentage, and your current account equity.
Enter Margin Details
Understanding Maintenance Margin & Margin Calls
What is Maintenance Margin?
Maintenance margin is the minimum amount of equity (value of your investments minus your loan) you must maintain in your margin account after you've purchased securities. It is typically expressed as a percentage of the current market value of the securities you hold on margin. Brokers set this percentage, which must meet or exceed FINRA's minimum of 25%, but is often higher (e.g., 30%, 35%).
What is a Margin Call?
A margin call occurs when your account equity falls below the maintenance margin requirement. Your broker will notify you (the "call") that you need to deposit additional funds or securities to bring your equity level back up to the maintenance margin. If you fail to meet the call promptly, the broker may sell some or all of your securities without further notice to cover the shortfall. This can result in significant losses.
How is the Requirement Calculated?
The maintenance margin requirement is calculated using a simple formula:
Maintenance Margin Requirement = Current Market Value of Securities * (Maintenance Margin Percentage / 100)
Your account equity must stay at or above this calculated dollar amount.
Calculating Excess Margin or Margin Call
To find out if you have excess margin or a margin call, you compare your current account equity to the calculated requirement:
Equity Status Amount = Your Current Account Equity - Maintenance Margin Requirement
- If the result is positive, this is your Excess Margin. Your account is above the minimum requirement.
- If the result is zero or negative, this is your Margin Call Amount (if negative, it's the amount you owe). Your account is below or at the minimum requirement.
This calculator performs this comparison and tells you the exact amount.
Maintenance Margin Calculation Examples
Click on an example to see the scenario and calculation:
Example 1: Healthy Account (High Equity)
Scenario: You have plenty of equity relative to your margin use.
Inputs:
- Current Market Value: $50,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $40,000
Calculation:
- Maintenance Requirement = $50,000 * (30 / 100) = $15,000
- Equity Status Amount = $40,000 (Equity) - $15,000 (Requirement) = $25,000
Result:
- Maintenance Margin Requirement: $15,000
- Excess Margin: $25,000
- Status: Above Requirement (Healthy)
Conclusion: Your account equity is well above the maintenance margin requirement.
Example 2: Account Closer to Requirement
Scenario: Your equity has decreased, bringing you closer to a potential margin call.
Inputs:
- Current Market Value: $50,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $17,000
Calculation:
- Maintenance Requirement = $50,000 * (30 / 100) = $15,000
- Equity Status Amount = $17,000 (Equity) - $15,000 (Requirement) = $2,000
Result:
- Maintenance Margin Requirement: $15,000
- Excess Margin: $2,000
- Status: Above Requirement (but getting close)
Conclusion: You still have excess margin, but less room for the market value to drop before hitting the requirement.
Example 3: Account Exactly at Requirement
Scenario: Your equity has dropped exactly to the maintenance margin level.
Inputs:
- Current Market Value: $50,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $15,000
Calculation:
- Maintenance Requirement = $50,000 * (30 / 100) = $15,000
- Equity Status Amount = $15,000 (Equity) - $15,000 (Requirement) = $0
Result:
- Maintenance Margin Requirement: $15,000
- Excess Margin / Margin Call: $0
- Status: At Requirement
Conclusion: Your account is exactly at the maintenance margin requirement. Any further decrease in market value will trigger a margin call.
Example 4: Small Margin Call
Scenario: Market value drops slightly below the point where your equity meets the requirement.
Inputs:
- Current Market Value: $50,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $14,000
Calculation:
- Maintenance Requirement = $50,000 * (30 / 100) = $15,000
- Equity Status Amount = $14,000 (Equity) - $15,000 (Requirement) = -$1,000
Result:
- Maintenance Margin Requirement: $15,000
- Margin Call Amount: $1,000
- Status: Margin Call
Conclusion: You have a $1,000 margin call. You need to add $1,000 (or securities of equivalent value) to meet the call.
Example 5: Larger Margin Call
Scenario: A significant drop in market value results in a larger margin call.
Inputs:
- Current Market Value: $50,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $10,000
Calculation:
- Maintenance Requirement = $50,000 * (30 / 100) = $15,000
- Equity Status Amount = $10,000 (Equity) - $15,000 (Requirement) = -$5,000
Result:
- Maintenance Margin Requirement: $15,000
- Margin Call Amount: $5,000
- Status: Margin Call
Conclusion: You have a $5,000 margin call. You need to deposit $5,000 to meet the call and avoid liquidation.
Example 6: High Market Value, Low Equity (Margin Call)
Scenario: You have significant positions on margin, but market movement has drastically reduced your equity.
Inputs:
- Current Market Value: $150,000
- Maintenance Margin Percentage: 25%
- Current Account Equity: $30,000
Calculation:
- Maintenance Requirement = $150,000 * (25 / 100) = $37,500
- Equity Status Amount = $30,000 (Equity) - $37,500 (Requirement) = -$7,500
Result:
- Maintenance Margin Requirement: $37,500
- Margin Call Amount: $7,500
- Status: Margin Call
Conclusion: Despite a high market value, your equity is insufficient, triggering a $7,500 margin call.
Example 7: Low Market Value (Positions Liquidated)
Scenario: After positions were potentially liquidated or market value severely dropped, the market value is now low.
Inputs:
- Current Market Value: $10,000
- Maintenance Margin Percentage: 30%
- Current Account Equity: $5,000
Calculation:
- Maintenance Requirement = $10,000 * (30 / 100) = $3,000
- Equity Status Amount = $5,000 (Equity) - $3,000 (Requirement) = $2,000
Result:
- Maintenance Margin Requirement: $3,000
- Excess Margin: $2,000
- Status: Above Requirement
Conclusion: Even with low market value, your remaining equity is above the reduced requirement.
Example 8: Account Wiped Out (Zero Equity)
Scenario: Extreme market losses have reduced account equity to zero or near zero.
Inputs:
- Current Market Value: $30,000
- Maintenance Margin Percentage: 25%
- Current Account Equity: $0
Calculation:
- Maintenance Requirement = $30,000 * (25 / 100) = $7,500
- Equity Status Amount = $0 (Equity) - $7,500 (Requirement) = -$7,500
Result:
- Maintenance Margin Requirement: $7,500
- Margin Call Amount: $7,500
- Status: Margin Call
Conclusion: With zero equity, you have a significant margin call equal to the full requirement.
Example 9: Brokerage with Higher Percentage
Scenario: Calculating with a more conservative brokerage that requires a higher percentage.
Inputs:
- Current Market Value: $80,000
- Maintenance Margin Percentage: 35%
- Current Account Equity: $28,500
Calculation:
- Maintenance Requirement = $80,000 * (35 / 100) = $28,000
- Equity Status Amount = $28,500 (Equity) - $28,000 (Requirement) = $500
Result:
- Maintenance Margin Requirement: $28,000
- Excess Margin: $500
- Status: Above Requirement (very close)
Conclusion: A slightly higher percentage can mean less room for error before a call.
Example 10: Zero Market Value, Some Equity
Scenario: All margin positions have been closed, but you have some cash or non-marginable securities left.
Inputs:
- Current Market Value: $0
- Maintenance Margin Percentage: 30%
- Current Account Equity: $5,000
Calculation:
- Maintenance Requirement = $0 * (30 / 100) = $0
- Equity Status Amount = $5,000 (Equity) - $0 (Requirement) = $5,000
Result:
- Maintenance Margin Requirement: $0
- Excess Margin: $5,000
- Status: Above Requirement (No margin debt on these securities)
Conclusion: With zero market value of securities *on margin*, the requirement is zero, and your equity is all excess.
Important Considerations
Margin trading is risky. Market value changes constantly. Brokers can change requirements or make calls without extensive notice. This calculator is for educational purposes only and does not constitute financial advice. Always consult with your broker for your specific account details and margin requirements.
Frequently Asked Questions about Maintenance Margin
1. What does "maintenance margin" mean?
It's the minimum equity level required in your margin account to keep your leveraged positions open. It's typically a percentage of the current market value of the securities bought on margin.
2. How is the maintenance margin requirement calculated?
It's calculated by multiplying the current market value of your marginable securities by your broker's maintenance margin percentage.
3. What is a margin call?
A margin call is a demand from your broker to deposit additional funds or securities because your account equity has fallen below the maintenance margin requirement.
4. How do I calculate the margin call amount?
Subtract your current account equity from the maintenance margin requirement. If the result is positive, that's the amount you owe (the margin call). If it's negative, you have excess margin.
5. What happens if I receive a margin call?
You must meet the call by depositing cash or securities, or the broker may liquidate (sell) your positions to bring your account equity back up to the required level. Liquidation can occur quickly and without much notice.
6. Is maintenance margin the same as initial margin?
No. Initial margin is the percentage of the purchase price you must pay upfront (currently 50% set by Regulation T for most securities). Maintenance margin is the minimum equity needed *after* the purchase to hold the position.
7. Can my brokerage's maintenance margin percentage change?
Yes. Brokers can set their maintenance margin requirements higher than the regulatory minimum (25%), and they can change these percentages based on market volatility, the specific securities held, or their own risk policies.
8. Where can I find my brokerage's maintenance margin percentage?
This information is usually detailed in your margin agreement with the brokerage. You can also contact their customer service department.
9. Does this calculator account for interest or fees?
No, this calculator focuses *only* on the equity-based maintenance margin calculation. It does not include margin interest, trading fees, or other costs which also affect your overall account equity over time.
10. Can I lose more than my initial investment with margin?
Yes, absolutely. If the market moves significantly against your position, you can lose your entire investment and may owe the broker additional funds, exceeding your initial deposit. A margin call is not a cap on potential losses.
