Enter the total equity amount ($) and the margin percentage borrowed for loan (%) into the Loan Margin Calculator. The calculator will evaluate and display the Loan Margin.
Loan Margin Formula
The following formula is used to calculate the Loan Margin.
LM = E * MR/100
- Where LM is the Loan Margin ($)
- E is the total equity amount ($)
- MP is the margin percentage borrowed for loan (%)
How to Calculate Loan Margin?
The following example problems outline how to calculate Loan Margin.
Example Problem #1:
- First, determine the total equity amount ($).
- The total equity amount ($) is given as: 100,000.
- Next, determine the margin percentage borrowed for loan (%).
- The margin percentage borrowed for loan (%) is provided as: 25.
- Finally, calculate the Loan Margin using the equation above:
LM = E * MR/100
The values given above are inserted into the equation below and the solution is calculated:
LM = 100,000 * 25/100 = 25,000.00 ($)
Example Problem #2:
For this problem, the variables required are provided below:
total equity amount ($) = 600,000
margin percentage borrowed for loan (%) = 30
Test your knowledge using the equation and check your answer with the calculator above.
LM = E * MR/100 = ?
