Reserve Ratio Calculator

Your details

Choose which quantity you want to calculate. Supply the two inputs that appear below.
Total customer deposits held by the bank.
USD
Cash in vault plus deposits held at the central bank.
USD
The minimum ratio mandated by the central bank. Enter 0 if there is no minimum (e.g. post-2020 US policy).
%
Reserve ratioModerate reserves
10%

Reserves as a percentage of total deposits

Reserves held100,000USD
Total deposits1,000,000USD
Loanable funds900,000USD
Required reserves100,000USD
Excess reserves0USD
Money multiplier10
Money multiplier (required ratio)10
10% %
Very low<5%Low5%-10%Moderate10%-20%High20%-35%Very high35%+

Reserve ratio: 10.00% - money multiplier of 10.00x

  • With a reserve ratio of 10.00%, the bank keeps $100,000 of every $1,000,000 in deposits on hand as reserves.
  • The remaining $900,000 is available to lend out to borrowers, earning interest income for the bank.
  • The money multiplier is 10.00: theoretically, $1 of new central bank reserves can support up to $10.00 in total deposits across the banking system.
  • The bank is holding exactly the required minimum in reserves with no excess cushion.

Next stepThe money multiplier is a theoretical maximum - in practice, banks hold excess reserves, consumers hold some cash, and loan demand limits actual money creation. Pair this with a loan-to-deposit ratio analysis for a fuller picture of a bank's balance sheet.

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