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.

- First, determine the total amount ($).
- Next, determine the guarantee free rate per quarter (%).
- Next, gather the formula from above = BGC = TA * QF/100.
- Finally, calculate the Bank Guarantee Cost.
- 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