What is a repo haircut?

A repo haircut is the discount applied to collateral value — a 5% haircut on a $100 bond means only $95 can be borrowed. Haircuts protect lenders against collateral price declines.

What is the difference between a repo and a reverse repo?

In a repo, you sell securities and agree to buy them back. In a reverse repo, you buy securities and agree to sell them back. The same transaction is a repo to the seller and a reverse repo to the buyer.

Repo Rate & Haircut Calculator

Calculate repurchase agreement (repo) interest, accrued amounts, haircuts, and margin requirements. Analyze collateral requirements for general collateral, specific repo, and tri-party repo transactions.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate repurchase agreement (repo) interest, accrued amounts, haircuts, and margin requirements. Analyze collateral requirements for general collateral, specific repo, and tri-party repo transactions. Use the repo calculator result to inform your calculation.

Repo Rate & Haircut Calculator

How to Use

Frequently Asked Questions

What is a repo haircut?

What is the difference between a repo and a reverse repo?