---
title: "Creating and Configuring Interest Rates"
description: "Interest rates are used to calculate the current value of lease payments. They are key to determining lease liability and the right-of-use asset for the balance sheet."
source_url: https://support.lucanet.cloud/en/documentation/lease-accounting/basic-configuration-lease-accounting/manage-interest-rates
language: en
last_updated: 2023-08-16
---
# Creating and Configuring Interest Rates

## Overview

**Interest rates** are used to calculate the **current value of lease payments**. They are key to determining lease liability and the right-of-use asset for the balance sheet.

To provide a **basis** for accounting leases, **interest rates** can be managed in the workspace of the same name. New interest rates can either be created **manually** or added by **importing CSV files**.

Interest rates can also be entered manually during the [creation or modification of a contract component](https://support.lucanet.cloud/en/documentation/lease-accounting/data-collection/create-configure-contract-components.md), which will override pre-configured interest rates, if any were set.

To allow calculation of country-specific interest rates and rates for different [asset classes](https://support.lucanet.cloud/en/documentation/lease-accounting/basic-configuration-lease-accounting/manage-asset-classes.md), each interest rate is always created for a specific combination of **asset class**, **country or region** and **currency**. In addition to this, the interest for each interest rate is split into maturity brackets.

{% warning-box %}
To ensure that an interest rate can be used for a specific asset class, start by creating the asset class in the [Asset Classes](https://support.lucanet.cloud/en/documentation/lease-accounting/basic-configuration-lease-accounting/manage-asset-classes.md) workspace.
{% /warning-box %}

## The ‘Interest Rates’ Workspace

The **Interest rates** workspace displays all the Interest rates that have already been created:

The 'Interest rates' workspace

## Creating an Interest Rate

Click **Add a new interest rate** to create a new interest rate.

The **New interest rate** dialog is displayed:

The 'New interest rate' dialog

{% info-box %}
It is also possible to manually enter an interest rate during the [creation or modification of a contract component](https://support.lucanet.cloud/en/documentation/lease-accounting/categorization.md). This manual entry will override any interest rate that might have been pre-configured.
{% /info-box %}

## Configuring Interest Rates

When configuring an **interest rate**, the following options are available:

{% info-box %}
Fields marked with a \* are mandatory fields.
{% /info-box %}

#### Asset class

Asset class to which the interest rate applies

{% warning-box %}
Only those asset classes that have already been created in the [Asset classes](https://support.lucanet.cloud/en/documentation/lease-accounting/basic-configuration-lease-accounting/manage-asset-classes.md) workspace will be available to choose from.
{% /warning-box %}

#### Currency

Currency to which the interest rate applies

#### Country or region

Country or region to which the interest rate applies

#### Valid from

Date from which the interest rate will apply

#### Yearly interest

Assignment of interest rates to maturity brackets. To do this, enter the applicable interest rate for each lease term.

The lease terms range from **Up to one year** to **Undefined year (terms > 20 years)**.

## Importing Interest Rates

As an alternative to manual creation, interest rates can also be imported in the form of CSV files:

Area for importing interest rates

Select the following options in the area above the overview table:

- Click **Browse** and upload the required CSV file.
- Use the **Drag & Drop** method to add the required CSV file.

Once this is done, click **Start import**.

{% idea-box %}
**{% u %}CSV Import Templates{% /u %}**

To make automatic imports easier for you, we have provided a template for the CSV file. The structure of this template matches that required for the import.

The CSV file includes instructions on how to add the data.

Use the following link to download the template:

- [Template for Interest Rate Imports](https://lnag.sharepoint.com/:x:/s/hubkm/ETQKqnSQmetAkErnFcX7GU8BdSO-IRUfJkenHlWsy9oRfQ?e=CvasnK)
{% /idea-box %}