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Incremental Borrowing Rate Template

Download this free template to help you calculate your 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 or subscription, 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.

Scroll down for more information on our methodology. ⬇️



For more information on our methodology, check out DebtBook's Guide to the Incremental Borrowing Rate.


As we continue to work through the initial implementation of GASB 87, we’re constantly reevaluating our application and our supporting tools to make sure we’re providing the best possible service to your team.

To that end, we’re excited to release an update to our IBR template, which will make it easier for our team to incorporate accurate, up-to-date market data into your rate calculations. Our new methodology takes a snapshot of multiple, publicly-available data points from across the municipal bond market to generate a consensus view of municipal bond yields and spreads on a quarterly basis. This approach will allow your team to generate an incremental borrowing rate for your lease obligations using actual market data that’s never more than 90 days old.

Please know that we are shifting our approach to the IBR template so that it is simpler for your team to use and understand and easier for our team to update going forward. We are not changing our methodology because of any issues or concerns with the prior template — if your team has already calculated an incremental borrowing rate for your lease obligations using the prior version of our IBR template, there is no need to update those calculations.

Disclaimer: DebtBook does not provide professional services or advice. DebtBook has prepared these materials for general informational and educational purposes, which means we have not tailored the information to your specific circumstances. Please consult your professional advisors before taking action based on any information in these materials. Any use of this information is solely at your own risk.