Enter the total amount ($) and the guarantee free rate per quarter (%) into the Calculator. The calculator will evaluate the Bank Guarantee Cost. 

Bank Guarantee Cost Formula

BGC = TA * QF/100

Variables:

  • BGC is the Bank Guarantee Cost ($)
  • TA is the total amount ($)
  • QF is the guarantee-free rate per quarter (%)

To calculate the Bank Guarantee Cost, multiply the total amount by the guarantee-free rate.

How to Calculate Bank Guarantee Cost?

The following steps outline how to calculate the Bank Guarantee Cost.

  1. First, determine the total amount ($). 
  2. Next, determine the guarantee free rate per quarter (%). 
  3. Next, gather the formula from above = BGC = TA * QF/100.
  4. Finally, calculate the Bank Guarantee Cost.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total amount ($) = 1000000

guarantee free rate per quarter (%) = 2.5