Enter the margin percent (%) and the total equity ($) into the Equity Margin Calculator. The calculator will evaluate and display the Equity Margin.
Equity Margin Formula
The following formula is used to calculate the Equity Margin.
EM = MP/100 * TE
- Where EM is the Equity Margin ($)
- MP is the margin percent (%)
- TE is the total equity ($)
How to Calculate Equity Margin?
The following example problems outline how to calculate Equity Margin.
Example Problem #1:
- First, determine the margin percent (%).
- The margin percent (%) is given as: 20.
- Next, determine the total equity ($).
- The total equity ($) is provided as: 100,000.
- Finally, calculate the Equity Margin using the equation above:
EM = MP/100 * TE
The values given above are inserted into the equation below and the solution is calculated:
EM = 20/100 * 100,000 = 20,000.00 ($)
Example Problem #2:
For this problem, the variables required are provided below:
margin percent (%) = 600,000
total equity ($) = 30
Test your knowledge using the equation and check your answer with the calculator above.
EM = MP/100 * TE = ?
