Securities Lending Income Calculator
Estimate the income from lending out your shares — the gross lending fee, your split with the broker, and the effective yield on your position.
How it works
Loan value = shares × price · Gross fee = loan value × fee rate × days ÷ 360 · Your income = gross × your split
When you enroll in a fully-paid securities lending program, your broker lends your shares to short sellers who pay a borrow fee, and you split that fee with the broker. The fee rate depends entirely on how hard the stock is to borrow — an easy-to-borrow index name might pay a fraction of a percent, while a heavily shorted stock can pay double digits. The income is a bonus on top of any price return and dividends, though lent shares may lose certain protections such as voting rights and the dividend may be paid to you as a taxable substitute payment.
Worked example
Lending 1,000 shares at $40 each is a $40,000 loan value. At a 3% annual fee that is $1,200 a year gross; with a 50/50 split you keep $600, an effective yield of 600 ÷ 40,000 = 1.5% on your holding.
Frequently asked questions
Who sets the lending fee rate?
The market does. The borrow fee reflects supply and demand for shares to short — scarce, heavily shorted stocks command high fees, while widely held names pay very little. Your broker quotes the current rate.
What are the risks of lending my shares?
You generally give up voting rights while shares are on loan, dividends may arrive as a taxable substitute payment rather than a qualified dividend, and you rely on the broker's collateral if the borrower defaults. You can usually still sell the shares at any time.
Why divide by 360?
Securities lending fees, like most money-market interest, accrue on a 360-day convention. The calculator prorates the annual fee to the number of days the shares are actually on loan.
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Educational estimate, not investment advice. Options and margin involve substantial risk.