Pro-level online calculator to compute repo interest, repo rate, settlement value (first leg) and repurchase amount (second leg) for both repo and reverse repo transactions.
Fast, accurate, and designed for financial professionals.
A repurchase agreement (repo) is a short-term secured lending transaction where one party sells securities today (the first leg) and agrees to buy them back at a future date (the second leg) at a higher price.
The price difference represents the repo interest.
Repos are widely used by:
banks
asset managers
hedge funds
dealers
central banks
They provide liquidity while using high-quality collateral such as government bonds.
A reverse repo is simply the other side of the same transaction.
If one institution is entering a repo, the counterparty is entering a reverse repo.
Repo = borrowing cash, lending securities
Reverse repo = lending cash, receiving securities
The economic mechanics and cash flow formulas remain the same.
Our calculator allows you to compute:
Based on repo rate, term, day-count convention, and principal amount.
Cash received by the seller of securities.
Future cash outflow including repo interest.
Results are accurate for professional use.
Calculator below uses actual/365 convention
Bond: $1,000,000 face value government bond
Term: 7 days
Repo rate: 5%
Day-count: Actual/360
Principal = $1,000,000
Interest = 1,000,000 x 0.05 x 7/360 = $972.22
= 1,000,000 + 972.22 = 1,000,972.22
Designed for traders, analysts and treasury specialists
Handles both repo and reverse repo cash flows
Instant calculations
Zero financial knowledge required
Supports multiple day-count conventions
Works on all devices
The first leg is the settlement value, meaning the initial cash received by the seller of securities.
The second leg is the repurchase amount, which includes the principal plus accrued repo interest.
Banks, hedge funds, dealers, and central banks use repos to manage liquidity and collateral.
Repo interest is proportional to the repo rate, principal amount, and the number of days in the agreement.
Collateral quality, term, market liquidity, and conditions in the money market.
No — it is the same transaction viewed from the opposite side.
If you want to know more details about repo and reverse repo transactions you can check our blog article here:
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