About the CFD Calculator
A contract for difference (CFD) lets you trade the price change of a share, index, commodity or currency without owning it. You put up only a fraction of the position’s value as margin, pay or receive the price difference when you close, and pay overnight financing for every night the position stays open. This CFD calculator brings those pieces together: margin required, leverage, gross profit or loss, financing, commission, net result, return on margin and the break-even exit price.
It is for retail traders planning a CFD trade, comparing brokers’ margin and financing terms, or checking a closed trade’s statement. Enter the direction, entry and exit price, the number of units, the margin rate your broker applies to that market, the annual financing rate and how many nights you expect to hold.
Financing is estimated on the opening position value using a 365-day year; brokers usually charge it nightly on the closing value, so long holdings will differ slightly. Enter the financing rate as a positive number for a cost or a negative number if your broker credits you (for example on some short positions). CFDs are not available to retail traders in the United States and are high-risk leveraged products elsewhere.
With the default inputs, the net profit / loss is $940.23. Change any value above to recalculate instantly.
How to use the cfd calculator
- 1Choose long if you expect the price to rise, short if you expect it to fall.
- 2Enter the opening and expected closing price and the number of units.
- 3Enter your broker’s margin rate and overnight financing rate for that market.
- 4Enter how many nights you plan to hold and any commission per side.
- 5Review net profit, return on margin and the break-even price before trading.
Formula and method
A CFD’s exposure is its full position value (price × units), but you only deposit the margin percentage of it, which is what creates leverage: leverage = 1 ÷ margin rate. Profit or loss is the price difference times units, reversed for a short position.
Overnight financing is the annual rate (usually a benchmark interest rate plus or minus the broker’s markup) applied to the position value for each night held, here on a 365-day basis. Commission is charged as a percentage of the trade value on both the opening and closing trade. The break-even price solves Net = 0 for the closing price, so it includes financing and both commissions. Return on margin divides net profit by the margin posted.
- Entry, Exit
- Opening and closing prices
- Units
- Number of CFD contracts or share-equivalents
- Margin%
- Broker margin requirement for the market
- Rate
- Annual overnight financing rate
Worked examples
Long 100 share CFDs from $150 to $160 over 10 nights
The $15,000 position needs $3,000 margin at 20%. A $10 rise earns $1,000; financing at 7% for 10 nights costs $28.77 and 0.1% commission on $15,000 + $16,000 costs $31, leaving $940.23 — a 31.3% return on margin.
Short 500 units from $50 to $46 over 30 nights
Shorting $25,000 of exposure with 10% margin ($2,500) and buying back $4 lower gains $2,000. Thirty nights of financing at 3% cost $61.64, for a net $1,938.36, or 77.5% on margin.
Index CFD loss at 20:1 leverage
A 2.5% drop on a $10,000 position loses $250, plus $5.34 financing and $9.88 commission. Because the margin was only $500, the $265.22 loss wipes out 53% of it.
Frequently asked questions
How is CFD margin calculated?+
Margin is the position value (price × units) multiplied by the broker’s margin rate. A $15,000 position at a 20% margin rate requires $3,000. Regulators in the UK and EU cap retail leverage at 30:1 for major currency pairs, 20:1 for major indices, non-major currencies and gold, 10:1 for other commodities and non-major indices, 5:1 for individual shares and 2:1 for crypto.
How is CFD overnight financing calculated?+
Brokers typically charge a benchmark interest rate plus a markup, divided by 365 (or 360 for some currencies), on the position value for each night it is held. Short positions may pay or receive financing depending on the benchmark rate and markup.
Can I lose more than my margin on a CFD?+
Your loss is based on the full position value, so a move against you larger than the margin percentage can wipe out your deposit. Retail clients in the UK and EU get negative balance protection and must be closed out when equity falls to 50% of required margin; elsewhere you may owe more than you deposited.
Are CFDs legal in the United States?+
No. CFDs are not permitted for retail traders in the US. US traders typically use options, futures or margin accounts for similar leveraged exposure.
What is the difference between CFDs and spread betting?+
Both are leveraged derivatives on price movements. In the UK, spread betting profits are generally free of capital gains tax and you bet a stake per point, while CFDs are taxed as capital gains and allow losses to be offset.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.