Cost Of Deposits Calculator

Work out cost of deposits instantly with clear inputs, formula shown and shareable results.

About Cost Of Deposits Calculator

Cost of deposits is interest paid over average deposits. Because current and savings balances pay little or nothing, a high share of them pulls the blended cost well below the rate the bank actually offers on term money.

Formula

Cost of deposits

Cost = interest paid / average deposits; implied term rate = cost / term deposit share

Worked example

With the default values below, Cost Of Deposits Calculator returns Cost Of Deposits of 5.0667%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Interest Paid On Depositsminimum 0: 38,000,000
Average Depositsminimum 0: 750,000,000
Share Of Current And Savings Balancesaccepts 0–100 %: 32 %

Results

Cost Of Deposits: 5.0667%
Implied Rate On Term Deposits: 7.4510%
Average Monthly Interest Paid: $3,166,666.67
Saving From Low-Cost Balances In Basis Points: 238.4

Step by step

1Values used
2Cost of deposits
3Cost Of Deposits= 5.0667
4Implied Rate On Term Deposits= 7.4510
5Average Monthly Interest Paid= 3,166,666.67
6Saving From Low-Cost Balances In Basis Points= 238.4

Assumptions and limits

The result is derived only from the 3 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 4 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 this the key competitive metric?

Because it sets the floor under lending rates. The bank with the cheapest deposits can price loans most keenly.

Should averages be daily?

Ideally yes. Period-end deposits can be inflated by short-term inflows and distort the ratio.