Enter the portfolio value ($) and the margin percentage requirement (%) into the Portfolio Margin Calculator. The calculator will evaluate and display the Portfolio Margin.
Portfolio Margin Formula
The following formula is used to calculate the Portfolio Margin.
PM = PV * MPR/100
- Where PM is the Portfolio Margin ($)
- PV is the portfolio value ($)
- MPR is the margin percentage requirement (%)
To calculate the portfolio margin, multiply the portfolio value by the margin requirement.
How to Calculate Portfolio Margin?
The following example problems outline how to calculate Portfolio Margin.
Example Problem #1:
- First, determine the portfolio value ($).
- The portfolio value ($) is given as: 40,000.
- Next, determine the margin percentage requirement (%).
- The margin percentage requirement (%) is provided as: 20.
- Finally, calculate the Portfolio Margin using the equation above:
PM = PV * MPR/100
The values given above are inserted into the equation below and the solution is calculated:
PM = 40,000 * 20/100 = 8,000 ($)
Example Problem #2:
For this problem, the variables required are provided below:
portfolio value ($) = 60,000
margin percentage requirement (%) = 30
Test your knowledge using the equation and check your answer with the calculator above.
PM = PV * MPR/100 = ?