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Money Market Borrowing Cost Calculator

Work out money market borrowing cost instantly with clear inputs, formula shown and shareable results.

About Money Market Borrowing Cost Calculator

Money market borrowing is priced on an actual-over-365 basis for very short periods, so the interest amount looks small but the annualised rate is what matters for comparison. Adding brokerage gives the all-in effective rate.

Formula

Money market cost

Interest = amount × rate × days / 365; effective rate = total cost / amount × 365 / days

Worked example

With the default values below, Money Market Borrowing Cost Calculator returns Total Borrowing Cost of $518,575.34. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Borrowedminimum 0
200,000,000
Borrowing Rateaccepts 0–100 %
6.75 %
Days Borrowedaccepts 1–365
14
Brokerage And Chargesaccepts 0–1 %
0.01 %

Results

Total Borrowing Cost
$518,575.34
Interest Component
$517,808.22
Effective Annualised Rate
6.7600%
Cost Per Day
$37,041.10

Step by step

  1. 1Values used
  2. 2Money market cost
  3. 3Total Borrowing Cost= 518,575.34
  4. 4Interest Component= 517,808.22
  5. 5Effective Annualised Rate= 6.7600
  6. 6Cost Per Day= 37,041.10

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 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 annualise a fourteen-day borrowing?

Because it must be compared with alternative funding of any tenor, and rolling it repeatedly compounds the cost.

What are the main risks?

Rollover risk. Short funding must be renewed constantly, and in stressed markets renewal can vanish or reprice sharply.

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