# MCLR Calculator

MCLR is abbreviated as Marginal cost of funds based lending rate, it is the one type of methodology for interest rates to be fixed. It refers to the minimum interest rate which cannot be lend below that unless it is allowed by Reserve Bank of India (RBI). Use the below online MCLR Calculator to find the calculation of Marginal Cost of Funds Based Lending Rate based on marginal cost of borrowing, return on net worth, negative carry on CRR, operating costs, and tenor premium.

## Marginal Cost of Funds Based Lending Rate Calculation

MCLR is abbreviated as Marginal cost of funds based lending rate, it is the one type of methodology for interest rates to be fixed. It refers to the minimum interest rate which cannot be lend below that unless it is allowed by Reserve Bank of India (RBI). Use the below online MCLR Calculator to find the calculation of Marginal Cost of Funds Based Lending Rate based on marginal cost of borrowing, return on net worth, negative carry on CRR, operating costs, and tenor premium.

Code to add this calci to your website  #### Formula:

Marginal Cost of Funds = MCB x 0.92 + RN x 0.08 Marginal Cost of Funds Based Lending Rate = MCF + CRR + OC + TP Where, MCB = Marginal Cost of Borrowing RN = Return on Net Worth CRR = Negative Carry on CRR OC = Operating Costs TP = Tenor Premium

### Example:

A person borrows a marginal cost of Rs. 2500 with return on net worth as Rs. 3000, CRR negative carry as 6%, operating costs as Rs 7000 and Tenor premium as 8%.

#### Solution:

Marginal Cost of Funds = MCB x 0.92 + RN x 0.08
= 2500 x 0.92 + 3000 x 0.08
= Rs. 2540.

MCLR = MCF + CRR + OC + TP
= 2540 + 6 + 7000 + 8
= Rs. 9554.