Work out bank guarantee commission instantly with clear inputs, formula shown and shareable results.
Guarantee commission is charged on value for the tenor, rounded up to whole quarters, with a minimum charge for small or short guarantees. Because the rounding is upward, a thirteen-month guarantee is billed for five quarters.
Guarantee commission
Commission = max(value × rate × quarters × 3/12, minimum charge)
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
It is a long-standing billing convention that also compensates the bank for the administrative cost of short guarantees.
Sometimes pro rata, but only after the original instrument is returned and the beneficiary confirms cancellation.