Net interest margin calculator
Work out a bank or lender's net interest margin (NIM), net interest income and interest spread from a year's interest earned, interest paid and average assets. Free, no sign-up, nothing leaves your browser.
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
Earning assets are loans, bonds and other balances that earn interest. The starting numbers are only an example. Use yearly figures, or the margin will be out of scale.
What net interest margin measures
Net interest margin, or NIM, is the interest a lender earns on its loans and investments, minus the interest it pays on deposits and borrowing, divided by the average assets that earn interest. It shows how much a bank makes from lending for each pound of earning assets, before staff, fees and other costs.
Margin versus spread
The spread is simply the average rate earned minus the average rate paid. The margin also counts how much of the lending is funded by money that costs nothing, such as current account balances and the bank's own capital, so a bank's NIM can be higher than its spread.
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