Macroeconomics
Bank Funding Cost Pass-Through Calculator
Estimate lending-rate pressure when bank deposit and wholesale funding costs change.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Understand Bank Funding Cost Pass-Through
One idea, three depths
Choose how deeply to explain Bank Funding Cost Pass-Through
Bank Funding Cost Pass-Through: Estimate lending-rate pressure when bank deposit and wholesale funding costs change.
Age 5Explain it to a 5-year-oldStart with a picture
Imagine using Bank Funding Cost Pass-Through to answer this question: estimate lending-rate pressure when bank deposit and wholesale funding costs change? Enter Deposit funding share, Deposit cost increase, Wholesale funding cost increase, and 2 other inputs; the calculator shows Estimated lending-rate increase. Try changing one number and watch what happens to Estimated lending-rate increase. The answer tells you Estimated lending-rate increase.
Age 15Explain it to a 15-year-oldConnect it to the formula
Capital requirements, competition, credit risk and fixed-rate books can delay or alter lending-rate transmission. The rule is Lending-rate effect = weighted funding-cost change × pass-through rate. Its input values are Deposit funding share (%), Deposit cost increase (%), Wholesale funding cost increase (%), Funding-cost pass-through to loans (%), Current average lending rate (%), and the main result is Estimated lending-rate increase. Try changing one number and watch what happens to Estimated lending-rate increase.
CollegeExplain it at college levelState the model precisely
This calculator evaluates a macroeconomics relationship while holding unmodelled conditions constant. The implemented relation is Lending-rate effect = weighted funding-cost change × pass-through rate, evaluated from Deposit funding share (%), Deposit cost increase (%), Wholesale funding cost increase (%), Funding-cost pass-through to loans (%), Current average lending rate (%) to produce Estimated lending-rate increase. Capital requirements, competition, credit risk and fixed-rate books can delay or alter lending-rate transmission. The result depends on comparable definitions, units, populations and time periods. It estimates a relationship; it does not establish causation or replace current primary data.
The economic question
Estimate lending-rate pressure when bank deposit and wholesale funding costs change.
Why this relationship is useful
Capital requirements, competition, credit risk and fixed-rate books can delay or alter lending-rate transmission.
Inputs that must be comparable
- Deposit funding share measured in %.
- Deposit cost increase measured in %.
- Wholesale funding cost increase measured in %.
- Funding-cost pass-through to loans measured in %.
- Current average lending rate measured in %.
Use one market, firm, population and time period throughout; mixing definitions can make a correctly calculated number economically meaningless.
The model
Lending-rate effect = weighted funding-cost change × pass-through rate
From inputs to output
The calculator combines Deposit funding share, Deposit cost increase, Wholesale funding cost increase, Funding-cost pass-through to loans, Current average lending rate and reportsEstimated lending-rate increase together with Weighted funding-cost increase, Projected average lending rate. Change one assumption at a time to identify what actually drives the estimate.
How to read Estimated lending-rate increase
Read the sign, magnitude, unit and period together. The result quantifies the relationship in “estimate lending-rate pressure when bank deposit and wholesale funding costs change”; it does not by itself prove that one input caused another.
Where interpretation can fail
Do not use the result when the input definitions, units or formula assumptions do not match the real situation. This is an educational model, not financial, investment, tax or policy advice; verify material decisions against primary data and professional guidance.
Supporting sourcesAcademic referencesPrimary standards, textbooks and complete citations
Standards, reading and academic references
Use the calculator as the worked interaction, then consult the primary standards and academic textbooks listed below. MW SysArc links to the original sources; the explanation on this page is original and does not reproduce them.
Principles of Economics 3e
Read the free OpenStax economics textbookCite this book
- APA 7
- Greenlaw, S. A., Shapiro, D., & MacDonald, D. (2022). Principles of economics 3e. OpenStax. https://openstax.org/books/principles-economics-3e/pages/1-introduction
- MLA 9
- Greenlaw, Steven A., et al. Principles of Economics 3e. OpenStax, 2022, https://openstax.org/books/principles-economics-3e/pages/1-introduction.
- Chicago author-date
- Greenlaw, Steven A., David Shapiro, and Daniel MacDonald. 2022. Principles of Economics 3e. Houston, TX: OpenStax. https://openstax.org/books/principles-economics-3e/pages/1-introduction.
OpenStax entries are free to read online. Follow the licence shown on each linked source before redistributing or adapting its content.
Reuse the page responsiblyCite this pageAPA, MLA, Chicago, Harvard, BibTeX and RIS
These formats cite this calculator page itself. They are separate from the academic references above, which support the mathematical method and terminology.
APA 7
MW SysArc. (2026, July 21). Bank Funding Cost Pass-Through Calculator. MW SysArc Tools. https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through
MLA 9
MW SysArc. “Bank Funding Cost Pass-Through Calculator.” MW SysArc Tools, 21 July 2026, https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through. Accessed 30 Aug. 2026.
Chicago 17
MW SysArc. “Bank Funding Cost Pass-Through Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 30, 2026. https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through.
Harvard
MW SysArc (2026) ‘Bank Funding Cost Pass-Through Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through (Accessed: 30 August 2026).
BibTeX and RIS records
BibTeX
@misc{mwsysarc_bank_funding_cost_pass_through_2026,
author = {{MW SysArc}},
title = {Bank Funding Cost Pass-Through Calculator},
howpublished = {MW SysArc Tools},
year = {2026},
url = {https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through},
note = {Published July 21, 2026; accessed August 30, 2026}
}RIS
TY - ELEC
AU - MW SysArc
TI - Bank Funding Cost Pass-Through Calculator
T2 - MW SysArc Tools
PY - 2026
DA - 2026-07-21
Y2 - 2026-08-30
UR - https://economics.mwsysarc.com/macro/bank-funding-cost-pass-through
N1 - Published July 21, 2026
ER -Clear answers
Frequently asked questions
What does the Bank Funding Cost Pass-Through do?
Estimate lending-rate pressure when bank deposit and wholesale funding costs change.
How does the Bank Funding Cost Pass-Through work?
The calculator applies this formula: Lending-rate effect = weighted funding-cost change × pass-through rate. Capital requirements, competition, credit risk and fixed-rate books can delay or alter lending-rate transmission.
What can I learn from the Bank Funding Cost Pass-Through?
It helps you explore the relationship described by this tool: Estimate lending-rate pressure when bank deposit and wholesale funding costs change. Change one input at a time to observe how it affects the result.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as an estimate or educational aid. Check important financial, business or policy decisions with qualified sources and current data.
Last reviewed . Calculations tested .