Expenses Planning Calculator

This calculator allows users to calculate the excess reserve and clearing balances necessary to cover an expected amount of FRB Services charges.

Instructions: Provide a value for expected charges, earnings credit rate for clearing balances, and interest rate for excess reserve balances. Then press ‘Calculate’. The clearing balances or excess reserves necessary to generate compensation to cover the expected charges is calculated in the ‘Balances needed to cover expected charges’ box. Click the underlined ‘Customize your balances’ text to customize your results.

NOTE: Javascript needs to be enabled for the Clearing Balance Calculator to work.

* Required Fields

Expected charges and interest rates
Expected charges eligible for earnings credits for 4 weeks*
Note: Do not enter "," or "$".		 $
Earnings credit rate for clearing balances*
Recent Rates (PDF)
Enter in decimal format. EX: 1.31% = .0131
Interest rate for excess reserve balances*
Recent Rates (Off-site Link)
Enter in decimal format. EX: 1.31% = .0131
 

Balances needed to cover expected charges
Contractual clearing balance:
(earns Federal Reserve Bank Services earnings credits) 		$
OR
Excess reserve balance:
(earns interest in cash) 		$
rightCustomize your balances:
Instructions: Adjust any one of the inputs in the bold boxes below to calculate a specific distribution of clearing and excess reserve balances that will cover the expected charges.
Proportion of balances held as clearing balances: %
Contractual clearing balances: $
Excess reserve balances: $
Sum of balances: $
 

Note:  The calculations above assumes the Earnings credit and Interest on excess reserve balances rates remain constant.

This calculator is for illustrative purposes only. The effects of carry-over and clearing balance band provisions are not incorporated in this calculator. Further, interest earned on excess reserves is not compounded by this calculator.

If you would like to change your contractual clearing balance level once you have completed the calculator, please complete the Clearing Balance Request form (PDF) and fax or mail your request to your local Reserve Bank.

For additional information about clearing balances and earnings credits, please refer to Sections III and VIII of the Reserve Maintenance Manual (PDF).

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