ARR Studio
Easily calculates compounded interest based on ARRC guidelines
Clients have been using software that was designed to calculate interest based on LIBOR. With the current mandatory move from LIBOR to SOFR, interest must now be calculated using this new methodology. Clients are finding themselves in need of a solution to perform the more complex compounding calculation.
The ARR Calculator is an easy-to-use tool that can compliment and enhance current software and workflows. The output can be used for internal tracking and compliance purposes or as a detailed invoice for billing purposes.
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Features
- Calculates Simple ARR – uses daily ARR rates to calculate simple interest daily.
- Calculates Daily Compounded Interest – compounds interest using daily ARR rates.
- Calculates Compounding in Arrears to reveal compounded cumulative interest in arrears.
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With LIBOR benchmarks being replaced with alternative risk-free rates such as SOFR, it’s important for clients to have a reliable tool that can:
- Identify number of Loans Accruing at LIBOR rate.
- Measure Requirement for conversion to new rates.
- Integrate Calculator to run rate conversion and send close
Benefits
- Easy-to-use tool that complements and enhances current software and workflows.
- Output can be used for internal tracking and compliance purposes as well as a detailed invoice for billing purposes.
- Allows clients to upload rates and holiday calendars that are essential when using lookback days
- Highly integratable with your core loan accounting platform
- Provides output that can be used as an invoice or internal record.
- Eliminates for off-system manual solutions
- Improves compliance position
