Result
Potential return
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Potential return = idle cash amount × rate ÷ 100 × days ÷ 365. The formula is the same as simple interest on a deposit — that's exactly what it is: idle cash can be placed short-term into a fixed-return instrument instead of sitting in a non-interest-bearing account.
The figure is a foregone gain, not an explicit loss — if a company doesn't place idle cash anywhere, that amount simply isn't earned, but it isn't spent either. Still, for a treasury function it's a real opportunity cost of letting capital sit idle.
In practice, the availability of short-term placement instruments and minimum entry amounts vary between banks — before relying on the computed return, check the actual terms for the amount and period you need.