Interest Calculator

09/10/2025
Knowledge

How To

LEAP can calculate the interest earned on funds deposited into your Client Accounts. A flat rate can be applied to all client funds and balances, or a range of rates by dates and amounts.

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Desktop: Click the LEAP Menu > Settings > Application Settings.

The LEAP Application Settings will open in a new window.

Web: Click User-added image > Settings > Application Settings.

The LEAP Application Settings will open in a new window.

Client Funds Administrator Matter

Before interest can be paid, a Client Funds Administrator Matter must be established. Click here for instructions on how to create one.

Click Matters > Client Funds Administrator Matter.
Enter the Client Funds Administration Matter No.
Click Save.

Configure Interest Rates

Click Accounting > Client Funds - Interest Rates.
Select either:
1. Flat rate applied to all Client Funds and balances.
2. Range of rates by dates and amounts.
Both options allow for the Interest Rate to be negative.

Calculate Interest by Date Range and Amount

Interest can be calculated on a range of rates by dates and amounts. For example:

Effective From Date	Interest Rate to Apply	Balance Amount Greater Than
01/06/2022	0.01%	0
01/06/2022	0.03%	50,000
01/06/2022	0.05%	100,000
01/08/2022	0.05%	0
01/08/2022	0.08%	50,000
01/08/2022	0.10%	100,000

Using the table above as an example: €150,000 deposited on 28/06/22, with interest to be paid on the 01/09/22,
interest will calculate as follows:

From 28/06/22 to 30/06/22: €150,000 x 0.05% divided by 365 days, over 3 days = €0.62
From 01/07/22 to 31/07/22: €150,000 x 0.05% divided by 365 days, over 31 days = €6.37

On 01/08/22 the interest rate will increase to 0.10%:

From 01/08/22 to 31/08/22: €150,000 x 0.10% divided by 365 days, over 31 days = €12.74
The amount of interest to be paid on 01/09/22 will be €0.62 + €6.37 + €12.74 = €19.73

Pay Interest to a Client

The Interest Calculator window will display Matters with Interest Due and allow you to create interest payments.

Click the LEAP Menu > Accounting > under Client Accounting > Interest Calculator.
From the Client Funds Interest Calculator window, select any matters required then click Create. The following will occur:
1. A payment for interest will be recorded on the Office Ledger of the Client Funds administration matter.
2. A Client Account receipt will be recorded on the Client Funds Ledger of each matter being paid interest.
3. The Last Calc. Date will be updated in the Interest Calculator window.
Interest will begin calculating based on the increased Client Account Ledger balances.

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The Last Calc. Date column represents either of the following:

The date interest was last calculated and paid; or
The date the matter was created (if interest had never been previously calculated and paid)

The Calculate To Date field can be a past or present date but cannot be in the future.

Create Cost Recoveries for Matters with Negative Interest

The Interest Calculator window will display Matters with Negative Interest Due and allow you to create interest payments.

Click the LEAP Menu > Accounting > under Client Accounting > Interest Calculator.
From the Client Funds Interest Calculator window, select Matters with Negative Interest from the drop down.
Select the matters then click Create.

This will create a new Cost Recovery for each selected matter.

Last Modified Date

9/10/2025 11:06 pm

Title

Interest Calculator

URL Name

Interest-Calculator-IE

Resolution