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Stock Portfolio Margin Loan Return on Investment Word Problem
Published on October 3, 2026
Word-Problem
Calculate your remaining funds, total profit, and return on investment (ROI) after buying stocks with a margin loan and selling them at a higher price.
Question
have a question. I have a portfolio worth 30.000 dollars. I get a loan on my shares for additional investment of 15.000. I buy stocks with all of my money including the borrowed amount. The cost of each share is 100 dollars so I get 450 shares. The stock price goes up and I sell my shares for 130 dollars each and I am in profit. How much money would I have left after I return the borrowed amount and how much would the profit be and the return of investment?
Answer
- Calculate the total revenue from the sale:
Since you sold 450 shares ateach:
- Calculate the remaining money after repaying the loan:
Subtract the borrowed amount () from the total revenue:
- Calculate the total profit:
The profit is the remaining money minus your initial personal investment ():
- Calculate the Return on Investment (ROI):
ROI is calculated by dividing the profit by the initial personal investment:
Final Results:
- Money left:
- Profit:
- Return on Investment: