LSTA Cost of Carry Calculator

Analyze LSTA delay costs with structured inputs. Compare price, SOFR, spread, dates, and delay counts. Download summaries, inspect formulas, and review practical example scenarios.

Calculated Result

Results appear here after submission, above the form as requested.

Effective Purchase Price
$0.00
Cost of Carry Rate
0.000000%
Delay Days
0
Total Cost of Carry
$0.00
Average SOFR
0.0000%
Spread Adjustment
0.000 bps
Daily Carry
$0.00
Day Count Basis
360
Commencement Date
-
Delayed Settlement Date
-
Lookback Window
-
Enter values and submit to generate a result summary.
Day Cumulative Carry
No schedule yet.

Calculator Inputs

Enter the purchase price on the commencement date.
Leave blank to use the original purchase price.
Enter the average SOFR for the lookback period.
Default shown for the common LSTA-style adjustment.
This starts the delay period.
This ends the delay period.
Use 360 unless your process requires another basis.
Choose the symbol for displayed exports and results.
Use a label to distinguish reports.
This page estimates carry using manually entered average SOFR. The displayed lookback dates subtract two business days and ignore market holidays.

Example Data Table

Purchase Price Average SOFR (%) Spread (bps) Delay Days Carry Rate (%) Daily Carry Total Carry
$1,250,000.00 5.1200 11.448 12 5.234480 $181.75 $2,181.03
$2,750,000.00 5.0500 11.448 18 5.164480 $394.51 $7,101.16
$4,100,000.00 4.9800 11.448 25 5.094480 $580.20 $14,505.12

Use these rows to validate your own inputs or compare scenarios.

Formula Used

Cost of Carry Rate (%)
Average SOFR (%) + [Spread Adjustment (bps) ÷ 100]
Delay Fraction
Delay Days ÷ Day Count Basis
Total Cost of Carry
Effective Purchase Price × [Cost of Carry Rate ÷ 100] × Delay Fraction
Daily Carry
Effective Purchase Price × [Cost of Carry Rate ÷ 100] ÷ Day Count Basis
Lookback Window Days
Days between two business days before commencement and two business days before delayed settlement

The spread default and lookback concept reflect standard LSTA-style guidance for this calculation. :contentReference[oaicite:1]{index=1}

How to Use This Calculator

  1. Enter the purchase price from the commencement date.
  2. Add an adjusted purchase price only when your workflow needs it.
  3. Input the average SOFR for the relevant lookback window.
  4. Keep the spread adjustment at 11.448 bps unless needed otherwise.
  5. Select the commencement and delayed settlement dates.
  6. Choose the day count basis used by your team.
  7. Press calculate to display the result above the form.
  8. Review the graph, summary, and carry schedule.
  9. Download the CSV or PDF report for sharing.

Frequently Asked Questions

1. What does this calculator estimate?

It estimates the carry cost for a delayed settlement using purchase price, average SOFR, spread adjustment, delay days, and the selected day count basis.

2. Why does the form ask for average SOFR instead of live rates?

This file is self-contained. It avoids external rate feeds, so you can enter the average SOFR already calculated for your relevant lookback period.

3. What is the default spread adjustment?

The form starts with 11.448 basis points. That is the commonly cited fixed adjustment for this LSTA-style convention.

4. How are delay days counted here?

The calculator uses the calendar-day difference between commencement and delayed settlement dates. It does not automatically exclude weekends or holidays from the delay period.

5. How are lookback dates determined?

The page subtracts two business days from each entered date. This is informational only and does not account for market holidays.

6. When should I use adjusted purchase price?

Use it when your internal settlement process requires a revised effective price. If left blank, the original purchase price is used automatically.

7. What does the chart show?

The chart plots cumulative carry across the delay period. It helps you see how the estimated charge grows each day.

8. Can I export the output?

Yes. The calculator exports a CSV summary and a PDF report, including the core inputs and results.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.