Margin Calculator

How to use the margin calculator

This tool covers three common meanings of “margin.” Profit margin describes how much of a selling price remains after cost. Stock trading margin estimates the account equity required to open a securities position. Currency exchange margin estimates the deposit needed for a leveraged foreign-exchange position. Select the calculation type at the top; the live results, visual breakdown, details table, and Excel workbook then follow that mode.

Profit margin inputs and outputs

Start with the Known values selector. The calculator can solve from any practical pair of cost, revenue, margin, and profit. Choose Cost and revenue when you know purchase or production cost and selling price. Choose a pair containing margin when you have a target percentage and need to solve for price, cost, or profit. Derived fields remain visible and read-only so that the complete pricing relationship is easy to audit.

• Cost is the direct amount spent to obtain or deliver the item or service. Use the same unit and period as revenue. Higher cost reduces profit, margin, and markup when revenue is unchanged.
• Revenue is the selling price or sales income before subtracting cost. Higher revenue increases profit and usually increases both margin and markup when cost is unchanged.
• Margin is profit divided by revenue. A zero margin means revenue exactly equals cost. A negative margin indicates a loss. A margin approaching 100% implies cost approaching zero.
• Profit is revenue minus cost. A negative profit is a loss. Profit is an amount, while margin and markup are percentages.

The primary result is the margin percentage. The supporting cards show profit, revenue or cost, and markup. The donut chart uses revenue as the total and divides it into cost and positive profit. If the inputs imply a loss, the calculator intentionally replaces the donut with an explanatory empty state because a loss is not a valid positive share of revenue. The details table shows every formula explicitly.

Stock trading margin inputs and outputs

Enter the stock price, number of shares, and the broker’s margin requirement. Stock price is the per-share market or order price. Shares may be whole or fractional where the broker permits fractional trading. The requirement is the percentage of the total position that must be funded with account equity. A higher price, larger share count, or higher requirement increases the amount required.

The primary result is the required account equity. The financed portion is the remainder of the position value after subtracting that equity. The chart compares your required equity with the financed portion. This is an opening-position estimate, not a maintenance-margin or margin-call model. Broker house rules can be stricter than regulatory minimums, and requirements can change with security type and volatility. Review the FINRA overview of margin accounts, the Federal Reserve’s Regulation T resources, and the SEC investor guidance on margin before using borrowed funds.

Currency exchange margin inputs and outputs

For foreign exchange, enter the exchange rate as the home-currency value of one purchased currency unit. Select the margin ratio, such as 20:1, and enter the number of units. The full exposure equals exchange rate multiplied by units. Required margin equals that exposure divided by the leverage ratio. For example, 20:1 leverage corresponds to a 5% margin rate.

The primary result is the home-currency amount set aside as margin. The supporting values show full exposure, leverage, and the implied margin rate. The chart separates required margin from leveraged exposure. Increasing leverage reduces the initial deposit but magnifies sensitivity to price changes; it does not reduce the economic size of the position. The CFTC’s retail forex advisory explains important leverage and fraud risks.

Interpreting results and avoiding common mistakes

Keep units consistent. Do not mix a monthly cost with annual revenue, a per-unit cost with total sales, or a quote in one currency with an exposure in another. Margin and markup are not interchangeable: a 25% margin on revenue equals a 33.33% markup on cost. In trading modes, the required amount is not the maximum possible loss, a fee, or a recommendation. Market moves, financing costs, commissions, spreads, maintenance rules, and liquidation policies are outside this simplified estimate.

Use the Reset button to clear all editable assumptions and return the visual to a neutral state. Use Download Excel after changing inputs to create a current-state workbook with Summary, Inputs, Breakdown, Details, and Notes sheets. The workbook stores percentages as numeric fractions and preserves unrounded values where appropriate. This calculator is educational and does not provide individualized investment, tax, legal, or financial advice.