Enter the firm’s bank account balance, the value of client money held at third parties, and the designated investments into the calculator to determine the client’s money.

Client Money Formula

The following equation is used to calculate the Client’s Money.

CM = a + b + c
  • Where CM is the total client money ($)
  • a is the firm’s client bank account balance at the close of the business on the previous day
  • b is the value of the client money held at third parties
  • c is the value of the designated investment

To calculate the client’s money, sum the client’s bank account balance, third-party value, and investment values.

What is Client Money?

Definition:

Client money is a term used to describe the total monetary value of a client’s bank account of the previous day plus the value of money held at third parties plus the value of client investments.

How to Calculate Client Money?

Example Problem:

The following example outlines the steps and information needed to calculate Client Money.

First, determine the balances of the account at the close of the previous day. In this example, the balance is found to be $200,000.00.

Next, determine the money held by third parties. In this case, the value held by third parties is $100,000.00.

Next, determine the client investments value. This is calculated to be $150,000.00.

Finally, calculate the client money using the formula above:

CM = a + b + c

CM = 200,000 + 100,000 + 150,000

CM = $450,000.00