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Loan Against Shares Calculator

Work out loan against shares instantly with clear inputs, formula shown and shareable results.

About Loan Against Shares Calculator

Lending against shares is an overdraft secured on a pledged portfolio. Because prices move daily, the lender sets a conservative advance rate and calls for margin once the loan-to-value breaches a trigger, which is the risk to size before drawing.

Formula

Margin headroom

Loan = value × LTV; Call value = loan / trigger LTV; Cushion = 1 - call value / value

Worked example

With the default values below, Loan Against Shares Calculator returns Loan Available Against The Portfolio of $1,000,000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Value Of Pledged Sharesminimum 0
2,000,000
Loan To Value Allowedaccepts 10–80 %
50 %
Annual Interest Rateaccepts 0–100 %
10.5 %
Margin Call Trigger LTVaccepts 20–95 %
65 %

Results

Loan Available Against The Portfolio
$1,000,000
Interest Cost Per Year
$105,000.00
Portfolio Value That Triggers A Margin Call
$1,538,461.54
Fall The Portfolio Can Absorb
23.08%

Step by step

  1. 1Values used
  2. 2Margin headroom
  3. 3Loan Available Against The Portfolio= 1,000,000
  4. 4Interest Cost Per Year= 105,000.00
  5. 5Portfolio Value That Triggers A Margin Call= 1,538,461.54
  6. 6Fall The Portfolio Can Absorb= 23.08

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

What happens at a margin call?

You must pledge more securities or repay part of the loan, failing which the lender can sell the pledged shares.

Why is interest charged only on drawings?

These facilities usually work as an overdraft, so interest applies to the amount actually used rather than the sanctioned limit.

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