Enter the total investment returns, interest paid, and average assets. The calculator will evaluate and display the net interest margin.

## Net Interest Margin Formula

The following formula can be used to calculate the net interest margin.

NIM = (IR – IP) / AA

- Where NIM is the net interest margin
- IR is the investment return
- IP is the interest paid
- AA is the average assets

## Net Interest Margin Definition

A net interest margin is a ratio of the return of an investment (minus interest) to the total average assets of the investment. The greater the ratio the smaller the assets or larger the return.

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