Incremental Borrowing Rate Template


Download this free template to help calculate your IBR

What is IBR?

The incremental borrowing rate (IBR) is an estimate of the theoretical interest rate you would have been charged had you financed the acquisition of a particular asset rather than leasing it.

You could ask a bank to provide you with a rate each time you enter into a new lease, but that may quickly become burdensome for both you and the bank. Rather than asking directly each time, you could use a simple framework to estimate the rate a bank would have charged.

Download this simple yet powerful template to quickly and easily estimate your incremental borrowing rate.