Robinhood Margin Rates Calculator

Robinhood Margin Cost Calculator

Standard Gold rate is usually around 6.75%. Non-Gold is higher (approx. 11.75%).

Gold members get the first $1,000 of margin borrowed interest-free.

Estimated Costs:

Monthly Interest:

$0.00

Daily Interest Cost:

$0.00

Gold Subscription:

$5.00

Total Monthly Cost:

$0.00

Understanding Robinhood Margin Rates

Margin is a line of credit provided by a brokerage that allows investors to purchase securities using their existing assets as collateral. On Robinhood, the cost of borrowing depends heavily on your subscription status and the current federal funds rate environment.

How Robinhood Gold Affects Margin

Robinhood Gold is a monthly subscription service that costs $5 per month. For margin traders, Gold offers two primary financial benefits:

• Interest-Free Allowance: Gold members currently receive the first $1,000 of their margin balance interest-free. This means you only pay the annual percentage rate (APR) on the amount borrowed over $1,000.
• Lower Interest Rates: Generally, Gold members have access to a significantly lower annual margin rate compared to non-Gold users.

The Calculation Formula

To calculate your annual margin cost, use the following logic:

Annual Interest = (Margin Borrowed – Interest Free Allowance) * (Annual Rate / 100)

To find the daily cost, Robinhood typically divides the annual interest by 360 days (the industry standard for interest calculations). To find your monthly bill, the calculator divides the annual total by 12 and adds the $5 Gold fee if applicable.

Example Calculation

Imagine you have Robinhood Gold and you borrow $10,000 at a 6.75% rate:

1. Subtract the $1,000 allowance: $10,000 – $1,000 = $9,000 billable.
2. Apply the annual rate: $9,000 * 0.0675 = $607.50 per year.
3. Monthly interest: $607.50 / 12 = $50.625.
4. Add the Gold fee: $50.625 + $5.00 = $55.63 total per month.

Margin Risks and Requirements

While margin can increase your buying power, it also increases your risk. If the value of your portfolio drops significantly, you may face a margin call. This requires you to deposit more cash or sell securities to maintain the "Maintenance Margin Requirement." Always monitor your "Maintenance Requirement" vs. your "Portfolio Value" to avoid forced liquidations.

function calculateMargin() { var marginAmount = parseFloat(document.getElementById("marginBorrowed").value); var annualRate = parseFloat(document.getElementById("annualRate").value); var isGold = document.getElementById("isGold").checked; if (isNaN(marginAmount) || marginAmount < 0) { alert("Please enter a valid margin amount."); return; } if (isNaN(annualRate) || annualRate 1000) { allowanceText = "Interest is only calculated on $" + (marginAmount – 1000).toLocaleString() + " (after $1,000 Gold allowance)."; } else { allowanceText = "Your entire margin balance is covered by the $1,000 Gold allowance. No interest charged."; } } else { allowance = 0; goldFee = 0; allowanceText = "Standard accounts do not receive an interest-free allowance."; } var billableMargin = marginAmount – allowance; if (billableMargin < 0) billableMargin = 0; var annualInterestCost = billableMargin * (annualRate / 100); var monthlyInterestCost = annualInterestCost / 12; var dailyInterestCost = annualInterestCost / 360; var totalMonthly = monthlyInterestCost + goldFee; document.getElementById("monthlyInterest").innerText = "$" + monthlyInterestCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("dailyInterest").innerText = "$" + dailyInterestCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("goldFeeDisplay").innerText = "$" + goldFee.toFixed(2); document.getElementById("totalMonthly").innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("allowanceNote").innerText = allowanceText; document.getElementById("marginResults").style.display = "block"; }