# Incremental borrowing rate

> Incremental borrowing rate — The rate the lessee would pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments — the discount rate when the implicit rate is unknown.

Source: https://lopifi.com/glossary/incremental-borrowing-rate
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is incremental borrowing rate?** In accounting, incremental borrowing rate means the rate the lessee would pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments — the discount rate when the implicit rate is unknown.

## Also known as

- IBR

## Words this system refuses for it

- cost of capital
- WACC

- **Category:** Fixed assets & leases
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** basis