How is interest calculated?

You only pay for the M1 Borrow margin loan on the days you are borrowing. Interest accrues for each day that you use your line of credit and is billed monthly.  

For example, an M1 Plus member** with a 5%* M1 Borrow margin interest rate would have a daily interest rate of 0.013889% (calculated as 5% / 360).   

If an M1 Plus member**  borrows $10,000 using margin, they would accrue interest of $1.3889 per day (calculated as $10,000 * (5%/360)).   

If an M1 Plus member borrowed this amount for the entire month (say 30 days), the interest billed for the entire month would be $41.6667 ($10,000*(5%/360)*30) and would be charged to their account on the third trading day of the following month. If they had at least $41.6667 in their M1 Invest cash balance, the interest amount would be deducted from their invest cash balance. Otherwise, the interest amount would be added to their M1 Borrow balance, increasing the Borrow balance from $10,000 to $10,041.6667).  


If you have further questions, please contact us.


*Rates may vary 

**M1 Plus is an annual membership that confers benefits for products and services offered by M1 Finance LLC and M1 Spend LLC, each a separate, affiliated, and wholly-owned operating subsidiary of M1 Holdings Inc. “M1” refers to M1 Holdings Inc., and its affiliates. 

All investing involves risk, including the risk of losing the money you invest. Borrowing on margin can add to these risks, and you should learn more before borrowing. M1 Borrow available on margin accounts with at least $2,000 invested. Not available for all account types including retirement, custodial and some trust accounts.  Margin rates subject to change. 

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