Work out net interest margin instantly with clear inputs, formula shown and shareable results.
Net interest margin is net interest income over average earning assets — the core profitability measure for a bank. Splitting it into asset yield and funding cost shows whether pressure is coming from lending competition or deposit repricing.
Net interest margin
NIM = (interest income - interest expense) / average earning assets
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 cash and fixed assets generate no interest, so including them understates the margin the lending book actually achieves.
A rising rate environment usually helps, since assets reprice faster than sticky deposits.