How much will borrow fees cost me if I hold a short position overnight?

Multiply your position value by your annualized borrow rate divided by 360 to get a daily cost, then multiply by the number of days you hold the short to estimate the total borrow fee.

Why do borrow fees matter for short selling?

Hard-to-borrow stocks can carry annualized borrow rates well above typical margin interest, and that cost accrues daily whether the trade is working or not, which can steadily erode a short position's profit.

Short Sale Borrow Fee Calculator

Enter Your Short Position

Hard-to-borrow stocks can carry a genuine, ongoing cost that adds up the longer you hold the short. Check this before you hold overnight.

Your Result

Fill in the fields on the left and click Estimate Borrow Cost to see what holding this short is likely costing you.

How this is calculated

Position value equals share price multiplied by shares shorted. This estimate uses a 360-day convention for converting an annualized borrow rate into a daily rate, common for stock loan fee calculations. Some brokers use 365; ask your broker which convention they apply.
Daily borrow cost equals position value multiplied by the annualized rate, divided by 360. Total borrow cost multiplies that by the number of days held.
Hard-to-borrow rates are not fixed. They can rise sharply if a stock becomes harder to locate, and your broker can force-close a short if shares are recalled and no borrow is available.
This tool does not include margin interest on the short sale itself, dividends you may owe if the stock pays a dividend while you are short, or any locate fees charged separately from the daily borrow rate.
Short selling carries theoretically unlimited loss potential since a stock's price has no upper limit. Confirm your broker's actual borrow rate and margin requirements before entering or holding a short.

Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter and a standard daily-rate convention. It is not financial advice and does not reflect your broker's actual borrow rate, which changes daily and can differ from what you enter. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Short selling involves substantial and potentially unlimited risk of loss. Always confirm current borrow rates and margin requirements directly with your broker.

How much will borrow fees cost me if I hold a short position overnight?

Enter Your Short Position

Your Result

How this is calculated

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