Margin Calculator
Margin is the money your broker blocks upfront to let you place a trade, and it determines the leverage you get. A margin calculator shows how much capital an equity order ties up, whether you are taking delivery or trading intraday, and the leverage that margin implies. Understanding it helps you size positions within your available funds and see clearly how leverage can magnify both gains and losses.
Margin Required
₹50,000
Total Order Value
₹50,000
Leverage
1x
About the Margin Calculator
A margin calculator works out the upfront funds required to place an equity order and the leverage that follows from the margin percentage. Delivery orders are usually fully paid, while intraday orders need only a fraction of the order value, freeing up capital but adding risk.
Why it is useful
Placing a trade without knowing the margin can leave you short of funds or over-exposed. The calculator tells you exactly how much will be blocked and how large a position your capital can control, so you can plan trades, manage risk and avoid the shortfall penalties brokers charge.
How the calculation works
Margin = Order Value × Margin %, where order value is quantity multiplied by price. Leverage is the inverse of the margin percentage: a 20% margin means 5× leverage, so a given amount can control five times as much stock. Delivery trades typically require 100% margin (no leverage), while intraday margins are much lower.
Key inputs explained
- Share price: The price per share of the stock you intend to trade.
- Quantity: The number of shares in the order, which sets the order value.
- Margin percentage: The fraction of order value the broker requires, set by trade type and rules.
- Trade type: Delivery, usually fully paid, or intraday, which allows leverage.
Example calculation
Inputs
- Share price
- ₹1,000
- Quantity
- 100 shares
- Trade type
- Intraday, 20% margin
Calculation breakdown
- Order value
- 100 × 1,000 = ₹1,00,000
- Margin
- 1,00,000 × 20% = ₹20,000
- Leverage
- 1 ÷ 0.20 = 5×
You need only ₹20,000 blocked to control a ₹1,00,000 position, giving 5× leverage. The same order taken as delivery would require the full ₹1,00,000. Leverage cuts both ways: a 2% move earns or loses ₹2,000, which is 10% of your own ₹20,000.
Benefits
- Tells you the exact capital an order will block before you place it.
- Shows the leverage a margin percentage provides.
- Helps you plan position sizes within your available funds.
Limitations
- Margin requirements are set by SEBI and brokers and change over time.
- Ignores the mark-to-market and additional margins that may be called intraday.
- Higher leverage magnifies losses just as much as gains.
Tips
- Treat leverage as a risk multiplier, not free money.
- Keep spare funds to meet any intraday margin calls and avoid penalties.
- For long-term investing, use fully paid delivery rather than leveraged positions.
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About this calculator
The Margin Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.