Margin Call Price Calculator
Find the price at which a long position bought on margin triggers a maintenance margin call from your broker.
How it works
Call price = P₀ × (1 − initial margin) ÷ (1 − maintenance margin)
When you buy on margin, part of the position is a loan and part is your own equity. As the price falls, the loan stays fixed while your equity shrinks, so equity as a share of market value drops. The margin call price is the level where that ratio falls to the maintenance requirement; below it the broker demands more cash or liquidates the position. Lower initial margin (more borrowing) means the call price sits closer to your entry.
Worked example
Buy at $100 with 50% initial margin and a 25% maintenance requirement. Call price = 100 × (1 − 0.50) ÷ (1 − 0.25) = 100 × 0.50 ÷ 0.75 = $66.67 — a 33.3% drop from your entry.
Frequently asked questions
What happens at a margin call?
Your broker asks you to deposit cash or marginable securities to restore equity to the maintenance level. If you do not act quickly, the broker can sell your positions — often without waiting for your instructions — to bring the account back into compliance.
Does a higher maintenance margin help or hurt me?
A higher maintenance requirement raises the call price, meaning the position is liquidated after a smaller decline. Brokers may raise maintenance margins on volatile or concentrated positions, tightening the cushion you have.
Is the call price the same for short positions?
No. This formula is for long positions. A short sale is called when the price rises, and uses a different relationship because the loss grows as the stock climbs.
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Educational estimate, not investment advice. Options and leveraged positions carry substantial risk.