Repurchase Rate Calculator

What is a Repurchase Rate (Repo Rate)?

The repurchase rate, or repo rate, is the interest rate at which a seller of a bond agrees to buy it back at a later date at a slightly higher price. It's commonly used in money markets as a short-term borrowing tool.

How to Use This Calculator

1. Enter the Initial Bond Price (the price at which you purchased the bond)
2. Enter the Final Bond Price (the price at which you sold the bond)
3. Enter the Interest Payment percentage that the bond pays annually
4. Enter the Holding Period in days
5. Click the Calculate button to see the repurchase rate and daily rate

Practical Applications

The repurchase rate is particularly useful for:

• Investors looking for short-term income from bond investments
• Financial institutions managing liquidity in money markets
• Understanding the yield on short-term bond transactions

Example

Suppose you purchase a bond for $980, sell it after 90 days for $990, and the bond pays 5% annual interest:

The calculator will show that your repurchase rate is approximately 19.35% annually and 0.22% daily.