Calculator
Bullet, amortising or cash sweep debt
The calculator applies three repayment profiles to the same loan. For each one it gives the debt service by year, the cumulative interest, the amount to refinance at maturity and the weighted average life.
Bullet
€21.60m
of cumulative interest and €60.00m to refinance
Amortising
€17.28m
of cumulative interest and €24.00m to refinance
Cash sweep
€14.03m
of cumulative interest and €4.02m to refinance
| Result | Bullet | Amortising | Cash sweep |
|---|---|---|---|
| Cumulative interest | €21.60m | €17.28m | €14.03m |
| of which interest paid | €21.60m | €17.28m | €14.03m |
| of which interest capitalised | €0.00m | €0.00m | €0.00m |
| Repayments through cash sweep | €0.00m | €0.00m | €19.98m |
| Amount to refinance at maturity | €60.00m | €24.00m | €4.02m |
| Weighted average life | 6.00 years | 4.80 years | 3.90 years |
| Year | Bullet service | Amortising service | Cash sweep service | Bullet principal | Amortising principal | Cash sweep principal |
|---|---|---|---|---|---|---|
| Year 1 | €3.60m | €3.60m | €9.30m | €60.00m | €60.00m | €54.30m |
| Year 2 | €3.60m | €10.80m | €12.73m | €60.00m | €52.80m | €44.83m |
| Year 3 | €3.60m | €10.37m | €12.44m | €60.00m | €45.60m | €35.07m |
| Year 4 | €3.60m | €9.94m | €12.15m | €60.00m | €38.40m | €25.03m |
| Year 5 | €3.60m | €9.50m | €11.85m | €60.00m | €31.20m | €14.68m |
| Year 6 | €3.60m | €9.07m | €11.54m | €60.00m | €24.00m | €4.02m |
The initial values are a sample input to replace with the terms of your offer and your business plan. This calculation gives an order of magnitude and does not bind any lender.
Method
The calculation formulas
Interest is calculated once a year on the outstanding principal. The amortising share is repaid in equal instalments after the grace period and the remainder at maturity. The capitalised share of interest is added to the principal. The cash sweep applies to the amortising profile.
Amortisation
Annual amortisation = amount × amortising share ÷ (maturity − grace period)
Cash sweep
Prepayment = (available cash flow − interest paid − amortisation) × cash sweep rate
Weighted average life
Weighted average life = sum (year × principal repaid in the year) ÷ total principal repaid
Example
Worked example
A €60m loan over 6 years carries a rate of 6.00%. As a bullet loan, it costs €21.60m of interest and is refinanced in full. Amortised at 60.00% after a 1-year grace period, it costs €17.28m and leaves €24.00m to refinance. With a cash sweep of 50.00% on an available cash flow of €15m a year, the amount to refinance falls to €4.02m and the weighted average life to 3.90 years. The terms of this example are sample inputs.
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