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Cap & Floor Impact Calculator
Enter a scope amount, the raw index-implied change, and a cap and floor to see the adjusted price with and without the collar, and exactly how much the cap or floor bit.
Without the collar
$90,000.00
With the collar (5%)
$50,000.00
What the collar bit
$40,000.00
Models one collar by hand. The product tracks the breach across the whole book and alerts when it happens.
Related reading: What does a price adjustment cap and floor do in a purchase contract?.
Cap & Floor Impact Calculator, explained
What does a price adjustment cap and floor do?
A cap limits how much the price can rise in one adjustment; a floor limits how much it can fall. Between the two, the price moves however the index moves. Outside those bounds, it stops: the buyer or supplier absorbs, carries forward, or loses the rest, depending on how the clause is written.