# Reserve Ratio Calculator

URL: https://speedycalculator.com/calculators/finance/reserve-ratio/
Last updated: 2026-10-25

> The reserve ratio calculator works out a bank's reserve ratio – reserves held divided by deposits – the required reserves at a given requirement, excess reserves, and the money multiplier.

## Inputs

- Reserves held
- Total deposits
- Reserve requirement (%)

## Results

- Reserve ratio
- Required reserves
- Excess reserves
- Money multiplier

## Formula

```
Reserve ratio = reserves ÷ deposits × 100
Required reserves = deposits × requirement
Excess reserves = reserves − required reserves
```

## Explanation

U.S. reserve requirements were set to 0% in March 2020; banks still hold large reserves for liquidity and regulatory reasons (LCR). Many other central banks still set requirements.

### How to use the Reserve Ratio Calculator

- **Reserves held**
- **Total deposits**
- **Reserve requirement**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the bank's reserves, deposits and the reserve requirement.

### Tips

- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.

### Common mistakes to avoid

- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.

### Inputs explained

FieldWhat to enterReserves heldAmount in your currencyTotal depositsAmount in your currencyReserve requirementIn %

### What each result means

- **Reserve ratio** = [Reserves held]÷[Total deposits]×100
- **Required reserves** = [Total deposits]×[Reserve requirement]÷100
- **Excess reserves** = [Reserves held] - [Required reserves]
- **Money multiplier** = [Total deposits]÷[Reserves held]

### Example values

How the main result changes when **Reserves held** changes and everything else stays at the example values above:

Reserves heldReserve ratio (%)60690912012150151801824024

## Worked example

Inputs — Reserves held: $120; Total deposits: $1,000; Reserve requirement: 10 %.

Results — **Reserve ratio = 12 %**; Required reserves = $100.00; Excess reserves = $20.00; Money multiplier = 8.33.

## FAQ

**What is the reserve ratio?**
The share of deposits a bank holds as reserves.

**What is the U.S. reserve requirement?**
0% since March 2020.

**What are excess reserves?**
Reserves above the required amount.

**What formula does the Reserve Ratio Calculator use?**
Reserve ratio = reserves ÷ deposits × 100.


## Sources

- [Federal Reserve – Reserve requirements](https://www.federalreserve.gov/monetarypolicy/reservereq.htm)