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Margin of Safety Calculator
Turn an intrinsic-value estimate into a disciplined price to buy below.
How the Margin of Safety Works
The Formula
MoS = (Intrinsic Value − Price) ÷ Intrinsic Value
Buy below = Intrinsic Value × (1 − target)
Buy below = Intrinsic Value × (1 − target)
The margin of safety is the percentage discount to fair value. Flip it around and you get the highest price you should pay to lock in your chosen margin.
Size It to Your Uncertainty
A precise, stable business might justify a 20–25% margin; a cyclical or speculative one warrants 40–50% or more. The margin is where you bake in humility about your own intrinsic-value estimate.
Full Portfolio Analytics
Want deeper insights?
ARIA tracks intrinsic value, margin of safety, and risk across every holding — so the discipline you apply to one stock here scales to your whole portfolio.
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