Imputed Interest Calculator

Imputed Interest Calculator calculator can be used to determine the taxable portion of housing benefits by comparing fair market rent with the actual rent paid.

Input Parameters

Calculation Results

Calculation Formula

Imputed Interest = FMR - Actual Rent Paid

Where:
FMR: Fair Market Rent
Actual Rent Paid: The actual rent paid by the recipient

Imputed Interest Calculator Calculator Usage Guide

Learn how to use the Imputed Interest Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the Fair Market Rent (FMR) in the first input field.
  2. Enter the Actual Rent Paid in the second input field.
  3. Click the "Calculate" button to compute the Imputed Interest.
  4. The result will be displayed in the Imputed Interest field.

Understanding the Formula

The calculator uses the following formula to determine the imputed interest:

Imputed Interest = FMR - Actual Rent Paid

The Fair Market Rent (FMR) is the amount that rent would normally be in the open market for a property of similar quality and location. The Actual Rent Paid is the amount the recipient actually paid. The difference between these two values is the imputed interest, which may be subject to tax.