Treasury Lockbox Acceleration ROI Calculator

Quantify the float relief a treasury lockbox delivers before you fund implementation. Enter average daily receipts and the float reduction you expect, then layer in your cost of capital and annual fee stack to surface cash unlocked, carrying-cost savings, ROI on fees, and the months required to earn back the program spend.

Blend check, ACH, and card receipts to reflect the dollars the lockbox will process each business day.
Calendar days shaved off mail, processing, and clearing delays once items post to the lockbox.
Defaults to 5% if blank; raise it to mirror your weighted average cost of capital or revolver rate.
Sum per-item, per-deposit, reporting, and bank relationship fees to capture the full program cost.

Examples

  • $875,000 daily volume, 2.3 days removed, 5.40% cost of capital, $82,000 fees ⇒ $2,012,500.00 USD freed, $108,675.00 USD in carrying cost avoided, $26,675.00 USD net benefit, 32.53% ROI on fees, and a 0.75-year payback horizon.
  • $410,000 daily deposits, 1.4 days saved, 4.20% cost of capital, no fees modelled ⇒ $574,000.00 USD unlocked and $24,108.00 USD in annual float value with the full amount flowing to the bottom line.

FAQ

Should I net ACH and RTP adoption out of the float reduction?

Yes. As more customers pay electronically, fewer checks hit the lockbox. Reduce the float days accordingly so your model reflects the blended rail mix you expect after the migration.

How do I aggregate multiple pricing tiers into the fee input?

Convert monthly account fees, per-item charges, and transmission add-ons into one annual dollar figure. Enter that blended total so ROI reflects the true program cost.

What if float days spike during peak season?

Run conservative, expected, and peak float reductions in separate passes. The range highlights sensitivity to seasonality when you present the project to finance and operations stakeholders.

Can I compare lockbox economics to alternative funding sources?

Yes. Use the net benefit and payback output to benchmark against the yield on commercial paper, revolver draws, or invoice factoring so you can select the cheapest source of working capital.

Additional Information

  • Float cash unlocked multiplies average daily receipts by days accelerated, measured in whole dollars freed from working-capital lockup.
  • Carrying-cost relief annualizes the float cash using your selected cost of capital so treasury teams can compare outcomes with alternative liquidity options.
  • Net benefit subtracts the fee stack from carrying-cost relief, producing the incremental cash value stakeholders can approve.
  • Return on fees and implied APR translate treasury benefits into familiar investment metrics for hurdle-rate reviews and board updates.

Related calculators