RtC K-factor requirement calculator
Risk-to-Client is the sum of four K-factors, each measured on its own window and weighted at its own rate. This adds them in one place — and shows which of the four is actually driving your requirement, because it is rarely the one firms expect.
IFR Art. 16 · K-AUM · K-CMH · K-ASA · K-COH · five coefficients · nothing stored
Add the four RtC factors
Runs in your browser · nothing uploadedEnter the measured average for each factor — not raw balances. Each has a different window: AUM is monthly over fifteen months less three; CMH and ASA are daily over nine months less three; COH is daily over six months less three. Leave anything that does not apply at zero.
Risk-to-Client factors
Article 16 · coefficients from the Article 15(2) tableFour factors, four windows, one requirement that moves every month. Pillar 1 Capital maintains all of them and shows which limb binds — with free capital monitoring to start.
Create free account →Volume is not the same as requirement
Because the coefficients differ by a factor of fifty, the largest number on your balance sheet is often not the largest contributor to your capital.
The spread
Non-segregated client money at 0.5% carries fifty times the coefficient of derivative order flow at 0.01%. A billion of derivative COH contributes less than three million of non-segregated client money.
Different lags
AUM lags on a fifteen-month monthly series, CMH and ASA on nine months of daily values, COH on six. A single business change reaches each factor at a different time.
By design
Assets you both manage and safeguard sit in AUM and ASA together. That is intended — the factors capitalise different risks on the same assets, and are not alternatives.
Rules reviewed 21 August 2026 · IFR (EU) 2019/2033 Art. 15(2), 16, 17, 18, 19 and 20
What this calculator does
It doesSum the four factors
- Applies all five Article 15(2) coefficients for the RtC group.
- Sums them into the Article 16 RtC K-factor requirement.
- Shows each factor’s share of the total, so the driver is visible.
- States each factor’s measurement window alongside it.
- Flags where a factor is contributing far more or less than its volume suggests.
It does notMeasure anything
- Build any of the four rolling series or apply the three-month exclusions.
- Determine segregation status, or the direction of delegated arrangements.
- Calculate Risk-to-Market or Risk-to-Firm factors, which are added to this.
- Produce your own funds requirement, for which this is one input.
RtC is one input to the requirement
Your own funds requirement is the highest of the permanent minimum requirement, the fixed overheads requirement and the sum of all your K-factors.
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, or passed to any analytics tool.
About the RtC K-factor requirement
What is the RtC K-factor requirement?
Under Article 16 it is the sum of K-AUM, K-CMH, K-ASA and K-COH. Risk-to-Client is one of three K-factor groups; Risk-to-Market and Risk-to-Firm are added to it to produce the total K-factor requirement under Article 15(1).
What are the coefficients?
From the Article 15(2) table: assets under management 0.02%; client money held 0.4% on segregated accounts and 0.5% on non-segregated; assets safeguarded and administered 0.04%; client orders handled 0.1% for cash trades and 0.01% for derivatives.
Why do the windows differ?
Each factor is measured under its own Article. AUM is monthly over fifteen months excluding the three most recent; CMH and ASA are daily over nine months excluding three; COH is daily over six months excluding three. All are calculated on the first business day of each month, so the requirement steps monthly while the underlying data ages differently.
Does a Class 3 firm calculate this?
No. A small and non-interconnected firm has no K-factor requirement at all under Article 11(2), and takes the higher of the permanent minimum requirement and the fixed overheads requirement instead.
Do you store the figures I enter?
No. Everything is calculated in your browser and discarded when you close or reload the page.
Four factors. Four clocks. One number.
Create a free account and keep them current together rather than reconstructing them each quarter.
No card required · free capital monitoring · nothing stored from this calculator