Economics · Class 12

Money Multiplier Calculator for Class 12 Money & Banking

Calculate the simple money or credit multiplier from the Legal Reserve Ratio (LRR) percentage.

Formula

Money Multiplier = 1 ÷ LRR (LRR in decimal form)

Worked example

At an LRR of 20%, the simple money multiplier is 5.

The interactive calculator on this page accepts your own question values and displays the final answer with step-by-step working.

Frequently asked questions

What formula does the Money Multiplier Calculator use?

This calculator uses: Money Multiplier = 1 ÷ LRR (LRR in decimal form). The interactive page shows the working step by step.

Is the Money Multiplier Calculator free?

Yes. It is free to use and does not require a login.

Can I use the calculator for exam preparation?

Yes. Use it to check numerical working and then practise writing the formula, substitution and final answer yourself.

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