Calculator
Nostro liquidity buffer & SOFR pre-funding cost calculator
Electronic money institutions (EMIs) and licensed MSBs pre-fund destination Nostro accounts to support instant RTP, FedNow, and SEPA Instant payouts. This calculator measures the compounded SOFR + credit-line cost of idle Nostro balances against safeguarded Treasury bill float income.
Compounded SOFR + spread (ACT/360)
5.132%
5.306% effective annual (ACT/365)
- Accrued funding cost
- 128,307.13
- Net carry over horizon
- 6,076.43
- Positive carry
- Annualised net carry
- 24.6 bps
Formula
Compounded credit cost = (1 + (SOFR + spread) ÷ 360)^days − 1
Net treasury float P&L = Balance × Safeguarded_Yield × (days ÷ 365) − Balance × Compounded credit cost
How to use it
Enter the pre-funded Nostro balance, overnight SOFR benchmark, revolving credit spread in bps, the yield earned on safeguarded accounts, and the liquidity cycle in days.
Review the compounded financing drag and net treasury carry.
Assumptions and limits
- Compounds revolving credit facility cost daily on an ACT/360 basis.
- Assumes safeguarded client funds earn a fixed short-duration sovereign bill yield.
Common questions
How does weekend pre-funding affect MSB corridor unit economics?
Because domestic RTGS rails close or restrict wholesale liquidity sweeps over weekends and bank holidays, payment firms must carry 3 to 4 days of peak payout inventory, tripling per-transaction working-capital cost.
For education only, not investment advice. Results depend entirely on the inputs and assumptions above; check important numbers independently.