Enter the purchase price ($) and the margin requirement ($) into the Initial Margin Calculator. The calculator will evaluate and display the Initial Margin.

## Initial Margin Formula

The following formula is used to calculate the Initial Margin.

IM = MR / PP * 100

• Where IM is the Initial Margin (%)
• PP is the purchase price ($) • MR is the margin requirement ($)

## How to Calculate Initial Margin?

The following example problems outline how to calculate Initial Margin.

Example Problem #1:

1. First, determine the purchase price ($). • The purchase price ($) is given as: 120.
2. Next, determine the margin requirement ($). • The margin requirement ($) is provided as: 60.
3. Finally, calculate the Initial Margin using the equation above:

IM = MR / PP * 100

The values given above are inserted into the equation below and the solution is calculated:

IM = 60 / 120 * 100 = 50 (%)

Example Problem #2:

For this problem, the variables required are provided below:

purchase price ($) = 700 margin requirement ($) = 180