Net Interest Margin Calculator
Net Interest Margin Calculator | ||
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Parameter | Description | Example Value |
Total Interest Income | The total interest income earned by the financial institution. | $100,000 |
Total Interest Expense | The total interest expense incurred by the financial institution. | $40,000 |
Average Earning Assets | The average value of earning assets held by the financial institution. | $1,000,000 |
Net Interest Margin (NIM) | The ratio of net interest income to average earning assets. Formula: (Total Interest Income – Total Interest Expense) / Average Earning Assets |
6% |