How do I calculate the margin call price on a long position?

For a long position bought partly with borrowed money, the maintenance-margin breach occurs at price = loan per share ÷ (1 − maintenance margin). Loan per share is the amount you borrowed divided by the number of shares. Below that price your equity falls under the maintenance requirement and a margin call — or forced liquidation — can follow.

What is a maintenance margin?

Maintenance margin is the minimum percentage of a leveraged position that must be your own equity rather than borrowed money. A common floor is 25%, though brokers and exchanges often set higher levels. When your equity slips below it, you get a margin call to add funds or the position may be liquidated.

Can I lose more than I invested with margin?

Yes. Because you are trading with borrowed money, a sharp adverse move can wipe out your equity and leave you owing more than you originally deposited. Leverage magnifies losses as well as gains, which is why margin trading carries substantially more risk than buying with cash.

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Margin call & liquidation price calculator

On a leveraged long, a margin call is triggered when the price falls to your loan per share divided by (1 − maintenance margin) — the point where your own equity drops below the required minimum. This tool shows how far the price can fall before that happens.

Entry price ($/share) Number of shares

How is the position financed?

Leverage (x)

Maintenance margin (%)

How leverage magnifies your downside

When you buy on margin, part of the position is your own money (equity) and part is borrowed. As the price falls, the loan stays fixed but your equity absorbs the entire loss — so a small drop in the stock is a much larger drop in your money. Your broker requires that equity stay above a maintenance margin (often 25% as a floor, frequently higher). Cross below it and you face a margin call or forced liquidation.

The trigger price for a long position is where equity equals the maintenance requirement:

margin call price = loan per share ÷ (1 − maintenance margin)

This is deliberately generic, exchange-agnostic math. It assumes a single long position, cash-secured borrowing at these figures, and that maintenance margin is applied to the position’s market value — it ignores interest on the loan, fees, day-trading rules, and the extra rules individual brokers layer on top. Real liquidation can happen at or slightly below the maintenance-breach price depending on your broker. Treat the number as a risk illustration, not a guarantee of where you’ll be called.

Sizing a position by risk first is the antidote — see the position size calculator and Value at Risk for how much a bad day can cost.

Margin trading can lose more than you deposit. A sharp move against a leveraged position can wipe out your equity and leave you owing your broker. This is a risk-education tool, not financial advice.

Illustrative, generic math on the numbers you enter — actual broker requirements and liquidation rules vary. Your figures never leave the page — the calculation runs entirely in your browser. The page loads standard pageview analytics, which never sees your numbers.

This math stops at what you typed in.

Tradune runs it continuously on your real holdings — with your money-weighted return next to a buy-and-hold SPY twin, and SEC insider filings flagged on the stocks you own.

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Educational analytics — not investment advice.

Portfolio risk analysis Margin calls: maintenance margin and breach price Position-size calculator Value at Risk (VaR) All calculators

Margin call & liquidation price calculator

How leverage magnifies your downside

This math stops at what you typed in.

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