Work out repo interest instantly with clear inputs, formula shown and shareable results.
A repurchase agreement is secured borrowing: securities are sold and repurchased at a higher price, the difference being interest. The haircut means the cash advanced is less than the collateral value, protecting the lender against price falls.
Repo
Cash = collateral × (1 - haircut); interest = cash × rate × days/365
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.
So the lender is protected if the collateral falls in value before it can be sold.
The same transaction seen from the cash lender's side — lending money against securities received.