Enter the purchase amount ($) and the initial margin rate (%) into the Calculator. The calculator will evaluate the Upfront Margin.

## Upfront Margin Formula

UM = PA * IMR/100

Variables:

- UM is the Upfront Margin ($)
- PA is the purchase amount ($)
- IMR is the initial margin rate (%)

To calculate Upfront Margin, multiply the purchase amount by the initial upfront margin rate.

## How to Calculate Upfront Margin?

The following steps outline how to calculate the Upfront Margin.

- First, determine the purchase amount ($).
- Next, determine the initial margin rate (%).
- Next, gather the formula from above = UM = PA * IMR/100.
- Finally, calculate the Upfront Margin.
- 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.

purchase amount ($) = 500

initial margin rate (%) = 60