Cash Pooling Benefit Calculator

Work out cash pooling benefit instantly with clear inputs, formula shown and shareable results.

About Cash Pooling Benefit Calculator

Cash pooling offsets group surpluses against overdrafts so interest is charged only on the net position. The benefit is the spread between overdraft and deposit rates applied to the amount offset — often the single largest treasury saving available.

Formula

Pooling benefit

Benefit = net position interest - (surplus × credit rate - overdraft × debit rate)

Worked example

With the default values below, Cash Pooling Benefit Calculator returns Annual Benefit From Pooling of $8,250,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total Surplus Balancesminimum 0: 200,000,000
Total Overdrawn Balancesminimum 0: 150,000,000
Rate Earned On Surplusesaccepts 0–20 %: 4 %
Rate Paid On Overdraftsaccepts 0–30 %: 9.5 %

Results

Annual Benefit From Pooling: $8,250,000.00
Net Group Cash Position: $50,000,000.00
Net Interest Without Pooling: -$6,250,000.00
Net Interest With Pooling: $2,000,000.00

Step by step

1Values used
2Pooling benefit
3Annual Benefit From Pooling= 8,250,000.00
4Net Group Cash Position= 50,000,000.00
5Net Interest Without Pooling= -6,250,000.00
6Net Interest With Pooling= 2,000,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Why is the benefit so large?

Because the spread between borrowing and deposit rates is wide, and pooling eliminates paying it on offsetting balances.

What are the obstacles?

Cross-border restrictions, withholding tax on intercompany interest and thin capitalisation rules can all limit pooling.