Net Interest Income Calculator
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How to use the tool
- Interest Income field – Type the total earned on loans and investments.
Try 1 050 000 or 2 300 000. - Interest Expense field – Enter the cost of deposits and other funding.
Try 500 000 or 1 375 000. - Press “Calculate” – The script instantly displays Net Interest Income (NII).
Formula
Net Interest Income is calculated as:
$$NII = Interest\,Income – Interest\,Expense$$
Example 1
Income = 1 050 000; Expense = 500 000 → $$NII = 1 050 000 – 500 000 = 550 000.$$
Example 2
Income = 2 300 000; Expense = 1 375 000 → $$NII = 2 300 000 – 1 375 000 = 925 000.$$
Quick-Facts
- Average U.S. bank net interest margin: 3.28 % in 2022 (FDIC Quarterly Report, 2023).
- NII constitutes about 69 % of total U.S. bank revenue (S&P Global Market Intelligence, 2023).
- Call Report Schedule RI requires quarterly NII disclosure (FFIEC Instructions, 2023).
- Basel III uses NII data for interest-rate-risk oversight (BCBS 368, 2016).
FAQ
What is net interest income?
NII is the difference between interest earned on assets and interest paid on liabilities, a bank’s core profit driver (OCC Handbook, 2022).
Why should I monitor NII frequently?
Regular tracking shows how rate changes affect earnings, letting you adjust funding and pricing strategies quickly (FDIC, 2023).
Does negative interest income make sense?
Yes. Inverted yield curves or fee reversals can produce negative income; the calculator handles negative entries.
How often do regulators expect NII reporting?
U.S. banks file NII data at least every quarter via the FFIEC 031/041 Call Report (FFIEC Instructions, 2023).
What inputs belong in Interest Income?
Include loan interest, securities coupons, and overnight placements—exclude fee income—to align with GAAP presentation (FASB ASC 942).
Which costs form Interest Expense?
Add interest on deposits, Fed funds, wholesale borrowings, and subordinated debt; exclude non-interest expenses (OCC Handbook, 2022).
How can NII support scenario planning?
Adjust the two fields to test rate shocks; a ±200 bp parallel shift is common in IRRBB studies (BCBS 368, 2016).
Is my data stored anywhere?
No. All calculations occur locally in your browser; nothing leaves your device.
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.
