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Own funds requirement calculator

Your own funds requirement is the highest of three numbers — the permanent minimum requirement, the fixed overheads requirement, and the sum of your K-factors. This shows all three side by side, tells you which one binds, and works out your liquidity requirement while it is there.

IFR Art. 11 · PMR Art. 14 · FOR Art. 13 · K-factors Art. 15 · liquidity Art. 43 · nothing stored

The other regime

Same three-way higher-of test, different article set and different K-factors. UK own funds requirement →

Work out your requirement

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If you already have your fixed overheads requirement, enter it directly. If not, the FOR calculator works it out from your financial statements first.

Permanent minimum requirement

Article 14 IFR · set by Article 9 IFD according to your permissions
Which describes your MiFID permissions? Art. 9 IFD Firms operating an MTF or OTF generally sit at €150,000, but rise to €750,000 where they also deal on own account. Your authorisation governs — this is a guide to the band, not a determination of it.

Your figures

Enter amounts in the currency selected above
Fixed overheads requirement (FOR) Art. 13 · 25% of prior-year fixed overheads
K-factor requirement — total Art. 15 · sum of RtC, RtM and RtF K-factors The sum of K-AUM, K-CMH, K-ASA, K-COH, K-NPR or K-CMG, K-TCD, K-DTF and K-CON. Class 3 firms do not calculate this.
Own funds currently held — optional Art. 9 · CET1 + AT1 + T2 Enter this and the result shows your surplus or shortfall against the requirement.
Guarantees given to clients — optional Art. 45 · feeds the liquidity requirement Where you have given guarantees to clients, 1.6% of their total value is added to the liquidity requirement.
What this means: an indicative requirement based only on the three figures you entered. It does not verify that your FOR or K-factor total were calculated correctly, and those are where the real work sits. Your competent authority may set a different requirement where it considers there has been a material change in your business activities, and may impose additional own funds under the supervisory review process. This is not advice.

Three numbers, recalculated every reporting period. Pillar 1 Capital keeps all three current, tracks which one binds as your business moves, and produces the validated IF templates — with free capital monitoring to start.

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Reading the result

Which number binds tells you where to look

The binding constraint is not a curiosity. It determines what actually moves your capital requirement, and therefore what you should be managing.

PMR binds

You are at the floor

Your requirement is fixed by your permissions, not your activity. It will not move unless your authorisation changes — but it also means growth is free until the FOR or K-factors overtake it.

FOR binds

Your cost base drives capital

Common for advisory and portfolio management firms. Every euro of fixed overhead costs you 25 cents of capital, so the deduction list in Article 13(4) is worth reading carefully.

K-factors bind

Your business volume drives capital

Your requirement moves with client assets, orders handled and trading flow. These are rolling averages, so the figure changes monthly whether or not you are watching it.

Rules reviewed 21 August 2026 · IFR (EU) 2019/2033 Art. 11, 13, 14, 15, 43 and 45 · IFD (EU) 2019/2034 Art. 9

Scope

What this calculator does

It compares three figures and applies Article 11. It does not produce any of the three.

It doesApply Article 11 and show the working

  • Takes the highest of the permanent minimum requirement, the fixed overheads requirement and the K-factor total.
  • Drops the K-factor limb for Class 3 firms, as Article 11(2) requires.
  • Names the binding constraint and shows how far clear the other two are.
  • Derives the Article 43 liquidity requirement — one third of the FOR, plus 1.6% of client guarantees.
  • Compares your own funds against the requirement, where you enter them.
  • Flags a shortfall, and the notification duty that comes with it.

It does notCalculate the inputs

  • Calculate your K-factor total, which requires eight separate metrics over rolling windows.
  • Verify your fixed overheads requirement or the deductions behind it.
  • Determine your permanent minimum band — that follows from your authorisation.
  • Test whether your own funds meet the composition limits in Article 9.
  • Account for additional own funds imposed under the supervisory review process.
  • Apply the transitional provisions in Article 57, where they still affect you.

Working through the whole Pillar 1 calculation?

Start with classification, then the fixed overheads requirement, then this. Each tool feeds the next, and none of them stores anything.

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Nothing you type here leaves your browser

The calculation runs entirely in your own browser. No figure you enter is sent to REGREP, written to a log, saved to a database, or passed to any analytics tool.

Reload the page and everything is gone. Continuous monitoring of your requirement happens inside your account, under our data processing agreement.

Questions

About the own funds requirement

How is the own funds requirement set?

Under Article 11 you must hold own funds at least equal to the highest of your permanent minimum capital requirement, your fixed overheads requirement, and your K-factor requirement. A small and non-interconnected firm takes the highest of the first two only, because Class 3 firms do not calculate a K-factor requirement.

Which permanent minimum band applies to me?

It follows from the services you are authorised to provide, under Article 9 of the IFD: €750,000 where you deal on own account or underwrite and place on a firm commitment basis, €150,000 where you hold client money or client financial instruments, and €75,000 where you hold neither. Firms operating an MTF or OTF generally sit at €150,000, rising to €750,000 where they also deal on own account. Your authorisation is what governs.

How is the liquidity requirement related?

Under Article 43 you must hold liquid assets of at least one third of your fixed overheads requirement. Where you have given guarantees to clients, Article 45 adds 1.6% of the total value of those guarantees. Note that it is one third of the FOR specifically, not one third of your own funds requirement — so a firm bound by its K-factors still calculates liquidity off the FOR.

What if my own funds are below the requirement?

That is a capital shortfall, and it is not something to discover at the next reporting date. You must notify your competent authority immediately, and expect it to ask what you are doing about it and by when. Where the shortfall arises from a change in your business activities, the authority may also reassess which requirement should apply to you.

Does holding enough own funds mean I am compliant?

No. The amount is only one part. Article 9 also sets the composition, as three cumulative floors: Common Equity Tier 1 must be at least 56% of the requirement, CET1 plus Additional Tier 1 at least 75%, and all three tiers together at least 100%. In practice that limits Tier 2 to no more than 25% of the requirement. A firm can hold the right total in the wrong form.

Do you store the figures I enter?

No. Everything is calculated in your browser and discarded when you close or reload the page. Nothing is logged, stored or sent to analytics.

Does this work for a UK firm under MIFIDPRU?

Not reliably. The structure is the same but the permanent minimum bands are in sterling and some definitions differ. REGREP covers UK IFPR reporting inside the platform.

The binding constraint changes. Usually without warning.

Create a free account and watch all three requirements move together, so you find out before your supervisor does.

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