Intra-group performance guarantees are commonly seen in industries such as natural resources, construction, defence and IT. They are also typically asked for in government contracts. The OECD Transfer Pricing Guidelines cover intercompany financial guarantees, but not performance guarantees. Accordingly, this article draws on the OECD Guidelines to provide practical guidance for the analysis of performance guarantees. Based on this analysis, it is concluded that the valuation-of-expected-loss approach is most suitable for determining the arm’s length price of performance guarantees.