Enter your margin and leverage (or your position size) to see the full position value, the margin it ties up and your real account leverage. Add an entry and exit price to see how leverage multiplies both gains and losses, after fees.
Last updated:
Account and position
$
Total money in the trading account.
I know
$
Collateral committed to this trade.
$
Full market value of the position.
× (x:1)
10 means 10:1. Margin requirement = 1 ÷ leverage.
Trade (for profit and loss)
Direction
Leave empty to skip the P&L part.
%
Charged on the full position value when opening and closing.
Enter your values to see the result.
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How to use the Leverage Calculator
Enter your account equity and pick the market you trade.
Choose what you know: the margin you put up, or the full position size.
Type the leverage, for example 10 for 10:1 (10x).
Add entry and exit prices and your fee per side to see the leveraged profit or loss.
Check the tables to see how different price moves and leverage levels change the outcome.
Effective leverage = total position size ÷ account equity
Profit / loss = quantity × (exit price − entry price), reversed for a short; quantity = position size ÷ entry price
Return on margin = net P&L ÷ margin ≈ price move % × leverage
Example: $1,000 margin at 10x opens a $10,000 position. A 3% rise earns about $300, a 30% return on the margin but only 3% on a $10,000 account. A 10% drop would consume the entire $1,000 margin.
Leverage, margin requirement and liquidation distance
Leverage
Margin requirement
Position per $1,000 margin
Move that wipes out the margin
Return on margin for a 1% move
2:1
50%
$2,000
50%
2%
5:1
20%
$5,000
20%
5%
10:1
10%
$10,000
10%
10%
20:1
5%
$20,000
5%
20%
30:1
3.33%
$30,000
3.33%
30%
50:1
2%
$50,000
2%
50%
100:1
1%
$100,000
1%
100%
The wipe-out move ignores fees, funding and maintenance margin. Actual liquidation happens a little sooner; use the crypto liquidation price calculator for an exchange-style estimate.
Tips for using leverage
Size trades by the amount you are willing to lose at your stop loss, not by the maximum leverage offered.
Watch effective account leverage: several small leveraged positions can add up to a very large total exposure.
Remember that fees, spreads and overnight funding are charged on the full position value, not on your margin.
Leave free margin in the account so normal price swings do not trigger a margin call.
Frequently asked questions
How do you calculate leverage?
Leverage = position size ÷ margin. If you open a $10,000 position with $1,000 of your own money, the leverage is 10:1 (10x). Going the other way, position size = margin × leverage and margin required = position size ÷ leverage.
What is effective leverage?
Effective leverage compares the position to your whole account rather than to the margin on one trade: position size ÷ account equity. A 10x trade using only 10% of a $10,000 account controls $10,000, so the account's effective leverage is 1x. Effective leverage is the better measure of overall risk.
How does leverage affect profit and loss?
Leverage multiplies the percentage return on your margin by the leverage. A 2% price move at 10x leverage is a 20% gain or loss on the margin. Fees are charged on the full position value, so they are multiplied too.
How big a price move wipes out my margin?
Roughly 1 ÷ leverage. At 10x a 10% move against you loses the full margin, at 50x only 2%, and at 100x just 1%. Exchanges and brokers close positions slightly earlier because they keep a maintenance margin, so the real liquidation point comes a bit sooner.
What is the difference between 10:1 and 10x leverage?
They mean the same thing: each unit of margin controls ten units of position value, so the margin requirement is 10%. Forex brokers usually write leverage as a ratio (30:1) and crypto exchanges as a multiplier (30x).
What leverage limits apply to retail traders?
Limits depend on the country and the product. For example, US forex dealers may offer up to 50:1 on major currency pairs and 20:1 on others, and EU and UK rules cap retail CFDs at 30:1 for major pairs down to 2:1 for crypto. Check your broker's current limits.
Is higher leverage riskier?
Higher leverage on the same account means a larger position, so every price move has a bigger effect on your balance and a smaller move can trigger liquidation. Many traders keep effective account leverage low and limit the amount they risk per trade.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.