Net Interest Margin Calculator: Measure Bank Profitability Easily
Use the Net Interest Margin Calculator to divide net interest income by average earning assets and see profitability in seconds. For example, $920 000 ÷ 11 200 000 = 8.21 %. Average U.S. banks posted a 3.28 % NIM in 2022 (FDIC Quarterly Banking Profile, 2023).
Net Interest Margin Calculator
Net Interest Margin:
★ Add to Home Screen
×
Follow these steps:
Tap the Share button at the bottom of the browser
Scroll down and tap “Add to Home Screen”
Tap “Add” to confirm
Follow these steps:
Tap the menu icon (⋮) in the top right
Tap “Add to Home screen”
Tap “Add” to confirm
Follow these steps:
Click the menu icon (⋮) in the top right
Click “Bookmarks”
Click “Bookmark this tab” or press Ctrl+D (Cmd+D on Mac)
Is this tool helpful?
Thanks for your feedback!
How to use the tool
Enter Net Interest Income—the interest earned minus interest paid. Try 920 000 or 1 480 000.
Enter Average Earning Assets—the mean value of loans and securities generating interest. Test 11 200 000 or 17 500 000.
Click “Calculate” to display your margin as a percentage.
Interpret the result: higher percentages generally signal more profitable asset-liability management.
U.S. bank average NIM: 3.28 % in 2022 (FDIC Quarterly Banking Profile, 2023).
EU bank average NIM: 1.32 % in 2022 (ECB Statistical Data Warehouse, 2023).
Analysts view ≥3 % NIM as healthy (Investopedia, https://www.investopedia.com).
Negative NIM signals paying more interest than earned (OCC Bank Supervision Handbook, 2020).
Frequently Asked Questions
What does the calculator measure?
It measures how efficiently your bank earns net interest on assets, echoing “a key profitability metric” (FDIC Quarterly Banking Profile, 2023).
Why is Net Interest Margin important?
NIM links pricing, funding costs, and risk, guiding strategy and valuation (OCC Bank Management Guide, 2020).
What is a good Net Interest Margin?
Margins above 3 % beat the U.S. long-term median of 2.97 % (St. Louis Fed FRED, 2023).
Can Net Interest Margin be negative?
Yes—paying more on deposits than earning on loans drives a negative ratio, flagging distress (Basel Committee Report, 2022).
How often should banks track NIM?
Regulators review it quarterly; many institutions monitor monthly for faster course correction (FDIC Call Report Instructions, 2023).
How do interest rates affect NIM?
Rising rates boost asset yields faster than deposit costs 60 % of the time (S&P Global Market Intelligence, 2023).
Does a higher NIM always mean better performance?
No; unusually high margins can hide credit-risk exposure or limited competition (IMF Financial Soundness Indicators, 2021).
How accurate is the calculator?
It applies the standard formula precisely; accuracy depends on entering audited income and asset figures (AICPA Audit Guide, 2022).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
