To calculate the IBR:
- Figure out the corporate borrowing rate taking into account the currency, economic environment and the term of the loan and make any necessary adjustments, such as for security and asset type.
- If there isn’t a corporate borrowing rate for the organization, use a borrowing rate for an index or similar industry, and adjust it for the organization.
Work with the Treasury team to calculate the IBR, since they will have the existing rates easily available.