Longterm Interest

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Last updated: Nov 10, 2022 by Support
1 min read


Longterm Interest Rate

The Longterm Interest Rate is used if the fixed Interest Period at Debt tranches or Shareholder Loans expires.

Input FieldDescriptionUnitPresetting

Longterm Interest Rate

The Longterm Interest Rate is used if the fixed Interest Period at Debt tranches or Shareholder Loans expires. The Interest is composed by the Base Rate and the Margin:

Base RateDefined Interest Base Rate.
MarginAdditional Margin on the Base Rate in % or in basis points (bps).


Fixed Interest Period = 0

A fixed interest period of Debt Tranches or Shareholder Loans of 0 years and a longterm interest rate of 0% can lead to an unintended errors! The interest according to the Debt Tranche or Shareholder Loan is in this case 0% despite a different interest input of for example 4% because in this case, the longterm interest rate of 0% is adopted after the fixed interest period of 0 years.


Percent nominal per year or bps5%

Calculation

The Longterm Interest Rate affects Debt calculations and Shareholder Loan calculations.