Your monthly interest charge is calculated by using your debt line balance, current SOFR, and the margin rate on your debt line, as follows:
The calculation is performed on a daily basis (the app performs this at 6:00 am UTC)
The current daily SOFR rate is retrieved from the Federal Reserve Bank of New York
At the end of the month the Sivo app sums the daily interest and rounds to 2 decimal places.
Here is an example of how the monthly interest charge is calculated on a debt line:
Debt line balance: MXN $50,000,000
SOFR: 4.79%
Margin rate of debt line: 17.5%
Annual interest rate: 17.5% + 4.79% = 22.29%
Daily interest amount: 50,000,000 * 22.29/360 = 30958.3333333
Daily amounts are totaled for the month to create the monthly interest charge.