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Margin Call & Liquidation Risk Calculator

Estimate equity loss and the decline that reaches a maintenance-margin threshold.
Approx. margin-call decline
52.38%
Equity after stress
$31,250
Investor equity loss
$18,750

Broker house requirements can exceed regulatory minimums and can change without notice. A broker may liquidate positions before the modeled threshold.

Borrowing magnifies both gains and losses and can force liquidation before an investment thesis plays out. Enter your equity, borrowed amount, maintenance margin, and stress decline to estimate remaining equity and the approximate decline that reaches the maintenance threshold.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this margin call & liquidation risk calculator works

The calculator adds investor equity and borrowing to find gross position value, applies the stress decline, and subtracts the unchanged loan. It solves for the asset decline at which equity equals the selected maintenance percentage.

Formula

Account equity = stressed market value − margin loan; maintenance ratio = equity ÷ market value

Concentration charges, options, portfolio margin, interest, changing requirements, trading halts, and broker discretion can cause earlier liquidation.

Primary specifications

Before you use the result

Assumptions

  • • The margin loan balance remains fixed during the price move.
  • • The portfolio moves as one asset without deposits or sales.
  • • The entered maintenance requirement represents the applicable broker threshold.

Quick start

  1. 1. Enter actual equity and margin borrowing.
  2. 2. Use the broker’s current house maintenance requirement.
  3. 3. Stress gaps beyond the trigger because forced sales can occur at worse prices.

Frequently asked questions

Can a broker sell without contacting me?

Broker agreements and applicable rules may permit liquidation without waiting for the investor to choose timing or securities.

Is maintenance margin always 25%?

No. Brokers can impose higher house requirements, especially for concentrated or volatile positions.

Can losses exceed my initial equity?

Yes. Fast gaps or illiquidity can leave sale proceeds below the outstanding loan and other obligations.

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