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Repo Interest Calculator

Work out repo interest instantly with clear inputs, formula shown and shareable results.

About Repo Interest Calculator

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.

Formula

Repo

Cash = collateral × (1 - haircut); interest = cash × rate × days/365

Worked example

With the default values below, Repo Interest Calculator returns Cash Advanced After The Haircut of $96,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Market Value Of Collateralminimum 0
100,000,000
Haircutaccepts 0–40 %
4 %
Repo Rateaccepts 0–100 %
6.5 %
Daysaccepts 1–365
7

Results

Cash Advanced After The Haircut
$96,000,000.00
Repo Interest
$119,671.23
Repurchase Price
$96,119,671.23
Effective Cost On Collateral Pledged
6.2400%

Step by step

  1. 1Values used
  2. 2Repo
  3. 3Cash Advanced After The Haircut= 96,000,000.00
  4. 4Repo Interest= 119,671.23
  5. 5Repurchase Price= 96,119,671.23
  6. 6Effective Cost On Collateral Pledged= 6.2400

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, 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 a haircut applied?

So the lender is protected if the collateral falls in value before it can be sold.

What is a reverse repo?

The same transaction seen from the cash lender's side — lending money against securities received.

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