Cost of Funds Calculator

Formula

The formula to calculate the Cost of Funds (COF) is:

\[ COF = B \times \left( \frac{IR}{100} \right) \times T \]

Where:

$ COF $ is the cost of funds ($)
$ B $ is the borrowed amount of funds ($)
$ IR $ is the interest rate of the borrowed funds (%)
$ T $ is the total amount of time the funds are borrowed

What is Cost of Funds?

Cost of funds describes the total interest expense paid by a company that borrows money in order to fund projects or other aspects of the business. The costs of funds are dependent on the borrowed amount, interest rate, and term of the borrowed funds.

Example

Let's say the borrowed amount (B) is $10,000, the interest rate (IR) is 5%, and the time period (T) is 1 year. Using the formula:

\[ COF = 10000 \times \left( \frac{5}{100} \right) \times 1 = 500 \, \text{dollars} \]

So, the cost of funds (COF) is $500.

Extended information about Cost-of-Funds-Calculator

Extended information about Cost of Funds Calculation Banking

Definition: The cost of funds in banking is the interest rate that banks must pay to acquire funds.

Formula: $ COF = \frac{IE}{ABL} $

$ COF $: Cost of funds
$ IE $: Interest expense
$ ABL $: Average balance of liabilities

Example: $ COF = \frac{50000}{1000000} $

$ IE $: $50,000
$ ABL $: $1,000,000

Extended information about Cost of Funds Formula

Definition: The cost of funds formula calculates the average cost incurred by a bank to fund its operations.

Formula: $ COF = \frac{IE}{AIL} $

$ COF $: Cost of funds
$ IE $: Interest expense
$ AIL $: Average interest-bearing liabilities

Example: $ COF = \frac{60000}{1200000} $

$ IE $: $60,000
$ AIL $: $1,200,000

Extended information about Average Cost of Funds Formula

Definition: The average cost of funds formula calculates the average interest rate paid by a bank on its liabilities.

Formula: $ ACOF = \frac{TIE}{TAL} $

$ ACOF $: Average cost of funds
$ TIE $: Total interest expense
$ TAL $: Total average liabilities

Example: $ ACOF = \frac{70000}{1400000} $

$ TIE $: $70,000
$ TAL $: $1,400,000

Extended information about Mutual Fund Cost Calculator

Definition: A mutual fund cost calculator helps estimate the fees and expenses associated with investing in mutual funds.

Formula: $ MFC = IA \times \left(1 - \frac{ER}{100}\right) $

$ MFC $: Mutual fund cost
$ IA $: Investment amount
$ ER $: Expense ratio

Example: $ MFC = 10000 \times \left(1 - \frac{2}{100}\right) $

$ IA $: $10,000
$ ER $: 2%

Extended information about Fund of Funds Fees Calculator

Definition: A fund of funds fees calculator estimates the total fees incurred when investing in a fund of funds.

Formula: $ FFC = IA \times \left(1 - \frac{TER}{100}\right) $

$ FFC $: Fund of funds cost
$ IA $: Investment amount
$ TER $: Total expense ratio

Example: $ FFC = 15000 \times \left(1 - \frac{3}{100}\right) $

$ IA $: $15,000
$ TER $: 3%

Extended information about Funds to Complete Calculator

Definition: A funds to complete calculator helps determine the total amount of funds required to complete a project or investment.

Formula: $ FTC = TC - CA $

$ FTC $: Funds to complete
$ TC $: Total cost
$ CA $: Current amount available

Example: $ FTC = 200000 - 50000 $

$ TC $: $200,000
$ CA $: $50,000