Enter the total VAR ($) and the initial value at risk ($) into the Marginal VaR Calculator. The calculator will evaluate the Marginal VaR.
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Marginal VaR Formula
The following two example problems outline the steps and information needed to calculate the Marginal VaR.
MVaR = Tvar – Ivar
Variables:
- MVaR is the Marginal VaR ($)
- Tvar is the total VAR ($)
- Ivar is the initial value at risk ($)
How to Calculate Marginal VaR?
The following steps outline how to calculate the Marginal VaR.
- First, determine the total VAR ($).
- Next, determine the initial value at risk ($).
- Next, gather the formula from above = MVaR = Tvar – Ivar.
- Finally, calculate the Marginal VaR.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total VAR ($) = 500
initial value at risk ($) = 250
MVaR = Tvar – Ivar = ?
