How it works
Leverage links committed margin to notional exposure. For example, five times leverage turns 1,000 of margin into 5,000 of modeled exposure.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
Margin used: $1,000; Leverage: 5x; Notional exposure: $5,000; Price move: +3.0%; Gross P&L: +$150; Return on margin before fees: +15.0%; Same 3% adverse move: -$150 / -15.0% on margin.
Calculation method
The percentage price move is signed before direction is applied. A negative move benefits a short position and harms a long position. Entry/exit mode derives the same move directly from prices.
Interpretation
The comparison table holds margin, the price move and entered fixed costs constant while changing leverage. Both favorable and unfavorable outcomes increase with exposure.
Limitations
The optional maintenance amount is only notional multiplied by your rate. It is not a liquidation trigger. Real platforms can use mark prices, tiers, collateral haircuts and cross-position rules outside this model.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- CME Group — Calculating futures profit or lossContract size and price-movement context; verify your broker or exchange specification separately.
- Investor.gov — Understanding FeesInvestment fee and compounding context; enter the terms of your fund or account.
Frequently asked questions
Does leverage change the price move of the underlying asset?
No. It changes exposure relative to margin. A given price move therefore has a larger effect on the margin balance; this tool does not recommend a leverage level.
What is a worked example for Leverage?
Margin used: $1,000; Leverage: 5x; Notional exposure: $5,000; Price move: +3.0%; Gross P&L: +$150; Return on margin before fees: +15.0%; Same 3% adverse move: -$150 / -15.0% on margin.