Work out cash pooling benefit instantly with clear inputs, formula shown and shareable results.
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.
Pooling benefit
Benefit = net position interest - (surplus × credit rate - overdraft × debit rate)
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.
Because the spread between borrowing and deposit rates is wide, and pooling eliminates paying it on offsetting balances.
Cross-border restrictions, withholding tax on intercompany interest and thin capitalisation rules can all limit pooling.