Want to calculate imputed interest? Enter the loan amount, interest rate, and time period, and our Imputed Interest Advanced Calculator will show you the imputed interest amount.
Imputed Interest Calculator
Imputed Interest Calculator
| Component | Description |
|---|---|
| Loan Amount | The principal amount of the loan or advance. |
| Market Interest Rate | The interest rate that would typically apply in an arm’s-length transaction. |
| Loan Period | The duration of the loan in years. |
| Imputed Interest | The interest amount that the IRS imputes on below-market or interest-free loans. |
| Formula | Imputed Interest = Loan Amount × Market Interest Rate × Loan Period |
| Purpose | Used to calculate the interest that is considered income for tax purposes on below-market or interest-free loans. |