How to use this calculator
- Enter reserve ratio (%), initial reserve injection.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Simple multiplier = 1 / reserve ratio.
Assumptions and limitations
It does not describe actual money creation, bank lending constraints or a central-bank policy forecast.
Worked example
With reserve ratio (%) = 10, initial reserve injection = 1000, simple multiplier is approximately 10.
What the result means
This is a classroom upper-bound model under repeated full relending.
Common questions
How should I interpret simple multiplier?
This is a classroom upper-bound model under repeated full relending.
What should I check before using this result?
It does not describe actual money creation, bank lending constraints or a central-bank policy forecast.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.