Find the reserve ratio from reserves and deposits.
Please do not make financial decisions based on these results.
What is the Reserve Ratio Calculator?
Find the reserve ratio from reserves and deposits. To use the Reserve Ratio Calculator, enter reserves, deposits; it returns reserve ratio, lending capacity, and shows them instantly as you type.
Where the Reserve Ratio Calculator fits
Find the reserve ratio from reserves and deposits. The main figure it returns is the Reserve ratio, worked out from the values you enter.
It belongs with the other macroeconomics tools. If you are comparing options or checking a result from another angle, try the Money Multiplier Calculator, Buying Power Calculator or the GDP Gap Calculator.
How to use the Reserve Ratio Calculator
- Enter your numbers. The inputs are Reserves ($), Deposits ($). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Reserve ratio, and the cards below show Lending capacity. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Reserve Ratio Calculator using the default values shown in the calculator above:
Inputs
| Reserves ($) | 12,000,000 |
|---|---|
| Deposits ($) | 100,000,000 |
Results
| Reserve ratio | 12% |
|---|---|
| Lending capacity | $88,000,000.00 |
With these inputs the calculator returns Reserve ratio: 12%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Reserves ($) from 12,000,000 to 14,400,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Reserve ratio | 12% | 14.4% | +20% |
| Lending capacity | $88,000,000.00 | $85,600,000.00 | -2.7% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Reserve Ratio Calculator reports Reserve ratio and lending capacity. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is the reserve requirement?
The share of deposits a bank must hold in reserve. The US Federal Reserve cut it to 0% in March 2020, but many other central banks still set one.
What is the spending multiplier?
It is 1 divided by one minus the marginal propensity to consume, so an MPC of 0.8 gives a multiplier of 5.
Where do the economic inputs come from?
Use official sources such as the BEA, BLS, Federal Reserve, IMF or World Bank for GDP, CPI, unemployment and money supply figures.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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