Calculator
Term sheet comparison
The calculator sets two or three term sheets side by side, entered line by line. It gives the all-in cost of each offer over the holding period and the headroom on the leverage covenant for an EBITDA entered once.
Term sheet A
5.36%
annual cost on average outstanding. EBITDA decline tolerated: 11.11%.
Term sheet B
9.26%
annual cost on average outstanding. EBITDA decline tolerated: 26.67%.
Term sheet C
9.25%
annual cost on average outstanding. EBITDA decline tolerated: 39.39%.
Term sheet A is the cheapest relative to the average outstanding. Term sheet C tolerates the largest EBITDA decline before the leverage covenant is breached.
| Item | Term sheet A | Term sheet B | Term sheet C |
|---|---|---|---|
| Interest rate | 4.75% | 8.25% | 8.75% |
| Interest over the period | €7.12m | €18.15m | €17.50m |
| Arrangement fee or OID | €0.60m | €1.63m | €1.00m |
| Commitment fees | €0.32m | €0.60m | €0.00m |
| Prepayment penalty | €0.00m | €0.00m | €0.00m |
| Total cost | €8.04m | €20.38m | €18.50m |
| Annual cost on average outstanding | 5.36% | 9.26% | 9.25% |
| Annualised all-in cost of drawn debt | 5.12% | 9.02% | 9.37% |
| Leverage at signing | 3.33x | 3.67x | 3.33x |
| EBITDA decline tolerated | 11.11% | 26.67% | 39.39% |
| Debt headroom under the covenant | €6.25m | €20.00m | €32.50m |
| Headroom after drawing the facility | €-3.75m | €10.00m | €32.50m |
The initial values are a sample input to replace with the terms of your term sheets. This calculation gives an order of magnitude and does not bind any lender.
Method
The comparison formulas
The cost of drawn debt follows the all-in cost calculation: interest calculated once a year on the outstanding principal, arrangement fee or OID, prepayment penalty. The arrangement fee applies to the drawn debt and to the undrawn facility. The commitment fee is paid each year on the undrawn facility. The annual cost is divided by the average outstanding to compare an amortising loan with a bullet loan.
Total cost
Total cost = interest + arrangement fees + commitment fees + prepayment penalty
Annual cost on average outstanding
Annual cost = total cost ÷ years held ÷ average drawn outstanding
Headroom on the leverage covenant
EBITDA decline tolerated = 1 − net debt ÷ (leverage covenant × EBITDA)
Example
Worked example
A company with €15.00m of EBITDA compares its term sheets over 4 years. Term sheet A, amortising, lends €50.00m at 4.75%. It costs €8.04m, or 5.36% a year of the average outstanding. Its covenant of 3.75x tolerates an EBITDA decline of 11.11%. Term sheet B, bullet, lends €55.00m at 8.25%. It costs €20.38m, or 9.26% a year. Its covenant of 5.00x tolerates an EBITDA decline of 26.67%. The terms of this example are sample inputs.
Benchmarks
Cost of new 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% |
Contact