Money Multiplier Calculator

The Money Multiplier Calculator helps calculating Money Multiplier.

In economics, Money Multiplier refers to how an initial deposit may lead to a bigger final increase in the total money supply.

Example of Money Multiplier

If the commercial banks gain deposits of 1 million dollars and this leads to a final money supply of 10 million dollars, the money multiplier is 10.

The Importance of Money Multiplier

The money multiplier is a key element of the fractional banking system.

There is an initial increase in bank deposits (monetary base).

The bank holds a fraction of this deposit in reserves and then lends out the rest.

The bank loan is expected to be re-deposited in banks allowing a further increase in bank lending and a further increase in the money supply.

The Formula of Money Multiplier

The Money Multiplier equals to:

Change in total money supply / Change in monetary base (reserves)

Or: 1 / Reserve Ratio

Initial Deposit (Dollars)

Reverse Ratio (%)

According to Money Multiplier Calculator, if the Reverse Ratio is 1%, the money multiplier equals to 100.00
According to Money Multiplier Calculator, if the Reverse Ratio is 2%, the money multiplier equals to 50.00
According to Money Multiplier Calculator, if the Reverse Ratio is 3%, the money multiplier equals to 33.33
According to Money Multiplier Calculator, if the Reverse Ratio is 4%, the money multiplier equals to 25.00
According to Money Multiplier Calculator, if the Reverse Ratio is 5%, the money multiplier equals to 20.00
According to Money Multiplier Calculator, if the Reverse Ratio is 6%, the money multiplier equals to 16.67
According to Money Multiplier Calculator, if the Reverse Ratio is 7%, the money multiplier equals to 14.29
According to Money Multiplier Calculator, if the Reverse Ratio is 8%, the money multiplier equals to 12.50
According to Money Multiplier Calculator, if the Reverse Ratio is 9%, the money multiplier equals to 11.11
According to Money Multiplier Calculator, if the Reverse Ratio is 10%, the money multiplier equals to 10.00
According to Money Multiplier Calculator, if the Reverse Ratio is 11%, the money multiplier equals to 9.09
According to Money Multiplier Calculator, if the Reverse Ratio is 12%, the money multiplier equals to 8.33
According to Money Multiplier Calculator, if the Reverse Ratio is 13%, the money multiplier equals to 7.69
According to Money Multiplier Calculator, if the Reverse Ratio is 14%, the money multiplier equals to 7.14
According to Money Multiplier Calculator, if the Reverse Ratio is 15%, the money multiplier equals to 6.67
According to Money Multiplier Calculator, if the Reverse Ratio is 16%, the money multiplier equals to 6.25
According to Money Multiplier Calculator, if the Reverse Ratio is 17%, the money multiplier equals to 5.88
According to Money Multiplier Calculator, if the Reverse Ratio is 18%, the money multiplier equals to 5.56
According to Money Multiplier Calculator, if the Reverse Ratio is 19%, the money multiplier equals to 5.26
According to Money Multiplier Calculator, if the Reverse Ratio is 20%, the money multiplier equals to 5.00
According to Money Multiplier Calculator, if the Reverse Ratio is 21%, the money multiplier equals to 4.76
According to Money Multiplier Calculator, if the Reverse Ratio is 22%, the money multiplier equals to 4.55
According to Money Multiplier Calculator, if the Reverse Ratio is 23%, the money multiplier equals to 4.35
According to Money Multiplier Calculator, if the Reverse Ratio is 24%, the money multiplier equals to 4.17
According to Money Multiplier Calculator, if the Reverse Ratio is 25%, the money multiplier equals to 4.00
According to Money Multiplier Calculator, if the Reverse Ratio is 26%, the money multiplier equals to 3.85
According to Money Multiplier Calculator, if the Reverse Ratio is 27%, the money multiplier equals to 3.70
According to Money Multiplier Calculator, if the Reverse Ratio is 28%, the money multiplier equals to 3.57
According to Money Multiplier Calculator, if the Reverse Ratio is 29%, the money multiplier equals to 3.45
According to Money Multiplier Calculator, if the Reverse Ratio is 30%, the money multiplier equals to 3.33