About This Calculator
This margin interest calculator helps you estimate the total interest and repayment amount when borrowing funds on margin. It uses the standard formula:
Total Interest = Loan Amount × (Interest Rate / 100) × (Loan Period / 360)
The 360-day convention is commonly used in financial institutions to simplify interest calculations.
How to Use
- Enter the loan amount in USD.
- Enter the annual interest rate as a percentage.
- Enter the loan period in days.
- Click "Calculate" to see total interest and repayment amount.
Frequently Asked Questions
What is margin interest?
Margin interest is the cost of borrowing money from a broker to buy securities.
Why use 360 days instead of 365?
Financial institutions often use a 360-day year to simplify calculations and standardize comparisons.
Does this calculator account for compounding?
No, it assumes simple interest with no compounding.
Can I use this for monthly interest?
You can calculate short-term interest by adjusting the loan period in days accordingly.
Is the result accurate for real-world loans?
This calculator provides an estimate. Actual interest may vary depending on the broker's terms and compounding policies.