The NBA Trade Calculator helps General Managers, analysts, and fans determine if a trade is compliant with the league’s Collective Bargaining Agreement (CBA) salary matching rules. Input the salary being traded out and your team’s salary cap status to find the maximum allowed incoming salary.
NBA Trade Calculator
NBA Trade Calculator Formula: The 125% Rule
For most trades involving teams that are **Above the Salary Cap**, the principal salary matching rule is:
Maximum Incoming Salary = (Outgoing Salary × 1.25) + $100,000
This rule ensures that a team does not drastically increase its total salary obligation through a single trade exception.
Formula Sources: CBA FAQ Salary Cap Rules (Q75), Basketball Reference Cap Details
Variables Explanation:
- Total Salary Being Traded Out: The combined annual salary of all players your team is sending to the trade partner. This is the base for the calculation.
- Total Salary Being Received In: The combined annual salary of all players your team is acquiring. This value is checked against the maximum allowed.
- Team Salary Cap Status: Whether your team is above or below the NBA Salary Cap. This determines which matching rule applies (125% + $100k or the trade exception).
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What is an NBA Trade Calculator?
An NBA Trade Calculator is a tool designed to verify the legality of a potential player trade under the financial rules outlined in the NBA’s Collective Bargaining Agreement (CBA). The CBA includes complex “salary matching” rules to prevent teams from unfairly consolidating talent by absorbing large salaries without sending commensurate salaries back.
The primary concern for trade legality is whether the salaries of players being acquired fit within the limits set by the league, which vary based on whether the team is over the salary cap, below the cap, or utilizing a specific Trade Exception (TPE). Our calculator focuses on the most common scenario: an over-the-cap team utilizing the standard 125% matching rule.
How to Calculate Maximum Incoming Salary (Example)
- Identify Outgoing Salary: A team trades away a player with a $10,000,000 salary.
- Determine Cap Status: The team is above the Salary Cap (most common).
- Apply the Formula: The maximum incoming salary is calculated as: ($10,000,000 × 1.25) + $100,000.
- Calculate Max Allowed: The maximum allowed incoming salary is $12,500,000 + $100,000 = $12,600,000.
- Check Trade: If the team receives a player with a $12,000,000 salary, the trade is legal (since $12,000,000 < $12,600,000).
Frequently Asked Questions (FAQ)
Is the Trade Calculator accurate for all CBA exceptions?
This calculator uses the standard 125% rule for over-the-cap teams. Specific exceptions (like the Mid-Level Exception, Bi-Annual Exception, or minimum salary exceptions) are not factored in and may allow for additional trade flexibility.
What is the minimum amount of salary I must trade out?
For a salary-matching trade, there is typically no minimum outgoing salary required, but the amount dictates the size of the incoming salary your team is allowed to absorb.
What happens if the team is below the salary cap?
If a team is below the salary cap, they can absorb incoming salary up to the amount of their remaining cap space, plus a small buffer, without needing to match outgoing salary precisely. Our calculator simplifies this to allow dollar-for-dollar matching.
Do draft picks count towards the salary match?
No. Draft picks, cash considerations, and future considerations do not count as salary for matching purposes under the CBA rules. Only player contracts are factored into the calculation.