SBLOC Calculator
How much a securities-backed line of credit lets you borrow, what it costs monthly, and how far your portfolio can fall before a maintenance call.
How this number is built
Doing it by hand
Step 1
Use the eligible portfolio value the lender actually counts — some concentrated or restricted stock is excluded or discounted.
Step 2
Apply the advance rate (typically 50–95% depending on how diversified and liquid the holdings are).
Step 3
That gives the credit line. Decide how much of it you actually plan to draw — borrowing less than the max leaves a cushion.
Step 4
Check the maintenance threshold in the agreement — the balance-to-portfolio ratio that triggers a call.
Step 5
Work out how far the portfolio can drop before that ratio is breached. This is the real risk number, not the interest rate.
What people ask next
What is an SBLOC?
A securities-backed line of credit lets you borrow against an investment portfolio without selling it, using the holdings as collateral. It's a line, not a term loan — draw and repay as needed, and interest accrues only on what's outstanding.
What triggers a maintenance call?
If the portfolio's value falls enough that the loan exceeds the lender's maintenance threshold, the lender can demand cash or securities, or sell holdings without notice — often with no advance warning and no ability to choose which holdings are sold.
How is this different from a margin loan?
Both use securities as collateral, but SBLOCs are typically arranged through a bank rather than a brokerage margin account, sometimes with more flexible use of funds (though not for buying more securities), and separate maintenance terms from a standard margin agreement.
Is SBLOC interest tax-deductible?
Sometimes, if the borrowed funds are used for investment or business purposes and you itemize — but not if the money goes toward personal spending. This isn't tax advice; check with a tax professional about your specific use of funds.
Searches this page answers
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