accurate Interest Calculation Tool

You lend money to a business, and expect it back with interest. That is one of the basic rules of corporate finance.

Only question to solve: what should that interest be? This is where InterestCalc gives you a clear and quick answer.

Only question to solve: what should that interest be? This is where InterestCalc gives you a clear and quick answer.

InterestCalc is a tool using an algorithm designed to give you an appropriate interest rate on any business loan.

The tool incorporates a wide range of qualitative and quantitative financial criteria to give a precise interest rate that makes economic sense.

No black box-calculation with arbitrary percentages, but instead a dynamic calculation founded on the actual current market conditions.

The economic model that forms the base of InterestCalc was inspired by the same model used by the banking sector to calculate interest rates.

This gives you a reliable solution every time.

The tool incorporates a wide range of qualitative and quantitative financial criteria to give a precise interest rate that makes economic sense.

No black box-calculation with arbitrary percentages, but instead a dynamic calculation founded on the actual current market conditions.

The economic model that forms the base of InterestCalc was inspired by the same model used by the banking sector to calculate interest rates.

This gives you a reliable solution every time.

1

Fill in the form

Let us know all the necessary

details of the loan, which we will

use to calculate the interest rate.

details of the loan, which we will

use to calculate the interest rate.

2

Complete the payment

After a successfull payment, our

system will immediately start the calculation

of the appropriate interest rate.

system will immediately start the calculation

of the appropriate interest rate.

3

Receive a detailed report

After the calculation you will receive

a detailed report of the calculation by email,

as well as the invoice of the order.

a detailed report of the calculation by email,

as well as the invoice of the order.

InterestCalc is a pay-per-use product. You submit the input for your loan and proceed to the payment option.

A single calculation costs EUR 250 excluding VAT. You submit your details, and the interest rate calculation report, as well as the invoice will be sent to the address you specify. Interested in receiving a full report on exactly how the calculation was performed? Please contact us directly through vmaessen@tipiconsultancy.nl.

A single calculation costs EUR 250 excluding VAT. You submit your details, and the interest rate calculation report, as well as the invoice will be sent to the address you specify. Interested in receiving a full report on exactly how the calculation was performed? Please contact us directly through vmaessen@tipiconsultancy.nl.

Financing projects with loans always generates financial risks for a company. Will the borrower pay me back? What interest rate gives the lender an appropriate profit margin to cover the risks and the borrower an appropriate cost of borrowing money? InterestCalc identifies the specific financing risks, values them, and incorporates them in an interest rate that makes economic sense.

This provides valuable financial information to management when making investment decisions.

This provides valuable financial information to management when making investment decisions.

InterestCalc provides a useful method to test whether the interest rate on a loan is determined under normal commercial terms under IFRS 9. If the loan is not determined under normal commercial terms, the ‘below-market’ element needs to be accounted for separately. Whilst this can be accounted for relatively easily, determining whether the loan is conducted under normal commercial terms can be tricky. In addition, Tipi Consultancy can prepare a detailed transfer pricing report upon request to substantiate the arm’s length nature of the related party transaction, as required by IAS 24.21.

In short, InterestCalc allows for a direct answer to the question: what is the normal commercial interest rate to take into account? This saves time in performing your audit.

In short, InterestCalc allows for a direct answer to the question: what is the normal commercial interest rate to take into account? This saves time in performing your audit.

InterestCalc was developed by Tipi Consultancy, a transfer pricing advisory firm. InterestCalc was born out of the need to calculate arm’s length interest rates in a simple but quality fashion and for a low cost. InterestCalc’s algorithm incorporates the principles used in the recently released Chapter X of the OECD Transfer Pricing Guidelines. Embedded in the calculations are therefore aspects such as credit rating estimations, notching adjustments, and risk-adjusted return on equity calculations. This leads to a close approximation of an arm’s length interest rate.

Upon request, Tipi Consultancy also prepares a detailed transfer pricing report in accordance with the OECD Transfer Pricing Guidelines, to substantiate every element used in the analysis. Such a report could be used as documentation towards tax authorities.

Upon request, Tipi Consultancy also prepares a detailed transfer pricing report in accordance with the OECD Transfer Pricing Guidelines, to substantiate every element used in the analysis. Such a report could be used as documentation towards tax authorities.

Calculating interest rates on business transactions is commonly done using sophisticated and complex databases. These databases require detailed technical knowledge, are difficult to use, and require subscriptions that can be extremely expensive.

Why choose InterestCalc over these options?

- Because InterestCalc is extremely fast and easy to use.

- Because InterestCalc is pay-per-use, without the need of an expensive subscription.

- Because InterestCalc does not only show you the result, but also what that result consists of.

- Because InterestCalc’s algorithm contains over 2 billion potential results from the search criteria.

- Because InterestCalc works bottom-up, looking first at the market circumstances, and building on this to calculate an interest rate.

Why choose InterestCalc over these options?

- Because InterestCalc is extremely fast and easy to use.

- Because InterestCalc is pay-per-use, without the need of an expensive subscription.

- Because InterestCalc does not only show you the result, but also what that result consists of.

- Because InterestCalc’s algorithm contains over 2 billion potential results from the search criteria.

- Because InterestCalc works bottom-up, looking first at the market circumstances, and building on this to calculate an interest rate.

InterestCalc was developed by Tipi Consultancy B.V. a transfer pricing advisory firm registered with the Dutch Chamber of Commerce (81576838) and located at Westhoven 7, 6042 NV, Roermond (The Netherlands). Tipi Consultancy B.V. is a member firm of the Dutch Association of Tax Advisors (NOB).

Receive the appropriate interest rate,
almost instantly!

Extremely fast, easy to use resulting in a detailed report.