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:

  1. First, determine the total equity amount ($).
    • The total equity amount ($) is given as: 100,000.
  2. Next, determine the margin percentage borrowed for loan (%).
    • The margin percentage borrowed for loan (%) is provided as: 25.
  3. 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 = ?