Robinhood Gold Margin Calculator
Use this calculator to estimate your available margin and total buying power with Robinhood Gold. Understanding these figures is crucial for managing your investments and avoiding margin calls.
Securities that qualify for margin (e.g., most stocks). Robinhood typically uses 50% of this value for marginable equity.
The amount of money you have currently borrowed on margin.
Your maximum allowed margin loan based on your Robinhood Gold tier (e.g., $1,000, $2,500, $5,000).
Calculation Results:
Effective Marginable Equity:
Maximum Margin Loan Potential:
Available Margin:
Total Buying Power:
Understanding Robinhood Gold Margin
Robinhood Gold is a premium subscription service offered by Robinhood that provides various benefits, including access to margin investing. Margin investing allows you to borrow money from Robinhood to purchase securities, effectively increasing your buying power beyond your settled cash balance.
Key Concepts:
- Settled Cash Balance: This is the cash in your account that is available for trading. It's the foundation of your buying power.
- Marginable Securities: Not all securities can be used as collateral for margin. Generally, most common stocks and ETFs are marginable, while penny stocks, options, and cryptocurrencies are not. Robinhood typically considers 50% of the value of your marginable securities as part of your marginable equity for initial margin calculations.
- Current Margin Debt: This is the amount of money you have already borrowed from Robinhood. This debt accrues interest and reduces your available margin.
- Robinhood Gold Margin Limit: Robinhood sets a maximum margin loan amount based on your account value and Gold tier. This limit caps how much you can borrow, regardless of your marginable equity.
- Effective Marginable Equity: This is the portion of your account that Robinhood considers as collateral for margin. It's generally calculated as your settled cash plus 50% of the value of your marginable securities.
- Maximum Margin Loan Potential: This is the highest amount you could potentially borrow, determined by the lesser of your effective marginable equity or your Robinhood Gold margin limit.
- Available Margin: This is the amount of additional margin you can borrow right now. It's your maximum margin loan potential minus any current margin debt. If this number is negative, it means you are over your margin limit or facing a margin call.
- Total Buying Power: This is the total value of securities you can purchase. It's calculated as your settled cash balance plus your available margin (if positive). If your available margin is negative, your buying power is limited to your settled cash (if positive).
How Margin Works on Robinhood Gold:
With Robinhood Gold, you can typically get 2x your marginable equity in buying power, up to your Gold margin limit. For example, if you have $5,000 in settled cash and $0 marginable securities, and a $5,000 Gold limit, your effective marginable equity is $5,000. Your maximum margin loan potential is $5,000 (the lesser of $5,000 equity and $5,000 limit). If you have no current debt, your available margin is $5,000, giving you a total buying power of $10,000 ($5,000 cash + $5,000 available margin).
Risks of Margin Trading:
While margin can amplify gains, it also amplifies losses. If the value of your securities drops, you may receive a "margin call," requiring you to deposit more funds or sell securities to meet maintenance requirements. Failure to do so can result in Robinhood liquidating your positions without your consent. Always understand the risks before trading on margin.