Calculator
Cost of a revolving credit facility (RCF)
The calculator gives the annual cost of a revolving credit facility from its average drawn amount. It separates the cost of the drawn amount from the cost of the undrawn amount, then relates the total to each euro used.
Cost per euro used
6.63%
Annual cost of €0.99m for a utilisation rate of 30.00%. The drawn amount bears 4.50% of interest and the undrawn amount 0.70% of commitment fee.
| Interest on the drawn amount | €0.67m |
|---|---|
| Utilisation fee | €0.00m |
| Commitment fee | €0.24m |
| Upfront fee, annual share | €0.08m |
| Annual cost of the facility | €0.99m |
| Utilisation rate | Annual cost | Cost per euro used |
|---|---|---|
| 10.00% | €0.61m | 12.30% |
| 25.00% | €0.90m | 7.20% |
| 50.00% | €1.40m | 5.60% |
| 75.00% | €1.92m | 5.13% |
| 100.00% | €2.43m | 4.85% |
The initial values are a sample input to replace with the terms of your facility. This calculation gives an order of magnitude and does not bind any lender.
Method
The components of the cost
The calculation is based on the average drawn amount over the year. The utilisation fee of the band reached applies to the whole drawn amount. The commitment fee is expressed as an annual rate or as a share of the margin, depending on the wording of the agreement. The upfront fee is spread over the tenor of the facility.
Drawn amount
Cost of the drawn amount = drawn amount × (base rate + margin + utilisation fee of the band)
Undrawn amount
Commitment fee = (facility amount − drawn amount) × commitment fee rate
Cost per euro used
Cost per euro used = (cost of the drawn amount + commitment fee + upfront fee ÷ tenor) ÷ drawn amount
Example
Worked example
A €50m facility is drawn on average at €15m, or 30.00%. The drawn amount bears 4.50% of interest and the undrawn part a commitment fee of 0.70%. With the upfront fee spread over 5 years, the facility costs €0.99m a year, or 6.63% per euro used. Drawn at 10.00%, the same facility costs 12.30% per euro used, compared with 4.85% when fully drawn. The terms of this example are sample inputs.
Benchmarks
Cost of new corporate financing in France
| Financing | August 2026 | August 2025 |
|---|---|---|
| Bank loans above €1m | 3.54% | 3.21% |
| Bank loans of €1m or less | 3.84% | 3.65% |
| Debt securities issuance | 3.87% | 3.26% |
| All financing | 3.73% | 3.35% |
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