Margin Calculator

What does equity margin mean?

Margin financing uses borrowed money alongside your own funds to purchase securities. Here, “own funds required” is the percentage of purchase value funded with your cash. A 50% entry means you fund half the position and borrow the other half. This definition avoids ambiguity with broker loan-to-equity ratios.

Margin and interest formulas

Position value = buy price × number of shares. Own funds = position value × own-funds percentage / 100. Loan = position value − own funds. Interest is estimated on the unchanged loan balance for the number of days entered.

Net profit or loss = (sell price − buy price) × shares − interest − other charges. Return on own funds = net profit or loss / own funds × 100. This is a long-position, simple-interest illustration; it does not model margin calls, collateral haircuts or forced sales.

Worked margin example

Buying 1,000 shares at ৳100 creates a ৳100,000 position. With 50% own funds, the estimated loan is ৳50,000. At 12% annual simple interest for 30 days, interest is ৳493.15. Selling at ৳110 gives estimated net profit of ৳9,506.85 before other charges, or 19.01% on the ৳50,000 own funds.

How to use the calculator

1. Enter buy price and whole-share quantity.
2. Enter the own-funds percentage confirmed by your broker.
3. Provide the annual borrowing rate and holding days.
4. Enter a hypothetical sell price and all other charges.
5. Test a lower sell price to see how leverage increases losses as well as gains.

DSE and CSE margin eligibility

This tool does not verify a security’s eligibility for financing or determine your approved borrowing limit. Do not interpret its example inputs as current exchange rules. Obtain the applicable requirement, interest calculation convention and charges from your broker. A price decline can create a margin shortfall, and losses can exceed your initial own funds.