Margin & Leverage Risk Calculator
Compare leveraged vs unleveraged growth, quantify margin interest drag, and stress-test market declines — all side by side.
Moderate Risk · 1.5x Leverage
Portfolio Parameters
$50,000
$
50% · $25,000
%
Borrow as a % of your own equity. 50% on $50k = $25k borrowed → $75k total.
8%
%
5%
%
10 yr
yr
On
Margin amount increases each year to maintain the same % of growing equity. More aggressive but higher potential returns.
25%
Brokerage minimum equity ratio before forced liquidation.
Total Buying Power
$75,000
Leverage Ratio
1.5x
Interest Cost / yr
$1,250
Drop to Margin Call
-55.6%
Leveraged vs Unleveraged After 10 Years
Margin pulls ahead: Yr 0No-Margin Final Equity
$108k
With-Margin Net Equity
$124k
Margin Advantage
+$16k
Margin paid off over 10 yr
Total interest paid over 10 yr: $12,500·Break-even return needed: 1.67%/yr
Equity Growth Over Time — Leveraged vs Unleveraged
Dynamic MarginDynamic margin: Margin amount increases each year to maintain 50% of growing equity. The orange dashed line shows how debt increases over time.
Margin Call Price Threshold
Req: 25% EquityMargin Call Trigger Portfolio Value
$33,333
Break-even Market Return (to cover interest)
+1.67%/yr
Market Selloff Stress Test
Snapshot at current portfolio size| Market Drop | Portfolio Value | Remaining Equity | Equity % | Margin Call Risk |
|---|---|---|---|---|
| -10% | $67,500 | $42,500 | 63.0% | Safe |
| -20% | $60,000 | $35,000 | 58.3% | Safe |
| -30% | $52,500 | $27,500 | 52.4% | Safe |
| -40% | $45,000 | $20,000 | 44.4% | Safe |
| -50% | $37,500 | $12,500 | 33.3% | Safe |