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 securities agrees to buy them back at a later date at a slightly higher price. It is commonly used in money markets as a way for financial institutions to lend money to each other.

How to Use This Calculator

1. Enter the Purchase Price of the security (the price at which you bought it)
2. Enter the Sale Price of the security (the price at which you sold it)
3. Enter the Holding Period in days (the number of days between the purchase and sale)
4. Click the Calculate button to compute the annualized repurchase rate

Example Calculation

Suppose you purchase a security for $980 and sell it after 30 days for $985:

Calculation: Repo Rate = [($985 - $980) / $980] * (365 / 30) * 100% = 0.604% per day

Annualized Repo Rate: 0.604% * 12 = 7.25% per year

Applications of Repo Rate

• Short-term borrowing for financial institutions
• Money market fund operations
• Central bank monetary policy tools
• Securities financing and hedging