Prices, interest and costs
Bank-guarantee cost calculator
A bank guarantee costs a commission on the guaranteed amount, often quoted as an annual percentage and charged for each quarter or year the guarantee runs, plus a one-off issuance fee. Enter the amount, the annual rate, the fee and the duration. The calculator charges every started period in full and shows the total and the cost per year.
- Free to use
- Shows every step
- Embeddable on your site
General information, not legal advice. Check the result against your contract and the law that applies to it.
When to use it
Use it to compare banks' offers for a guarantee, or to see what a guarantee that was never returned keeps costing you.
How to get a reliable answer
Step 1
Take the figures from the contract
Use the dates, periods and amounts the signed contract states, not a summary or an old spreadsheet.
Step 2
Check the working
Every result shows its steps, its assumptions and the data it used, so you can see where each number comes from.
Step 3
Keep it on the contract
In Pactinel the same calculation runs for every contract you hold and reminds the owner in time.
Frequently asked questions
Why is every started period charged in full?
Most banks charge commission for each started quarter or year, so a guarantee returned a few days into a new period costs the whole period. Ask your bank how it counts.
How do I stop paying for a guarantee?
Get the original back from the beneficiary, or a written release, and hand it to your bank. Commission usually runs until the bank has it.
Embed this calculator
Paste this code into your page. The calculator runs inside the frame and links back to this page.
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