Commercial loan commitment fee calculator
Estimate an unused commitment fee from total commitment, utilized amount, annual fee rate, fee days and contractual year basis.
Unused commitment fee estimate
- Unused commitment
- $9,000,000.00
- Annual fee rate
- 0.3500%
- Fee-day fraction
- 90/360
Use the estimate to understand the calculation structure. The agreement may change the eligible base through exclusions, tiers, LC usage, swingline exposure or commitment reductions.
Calculation boundaries
Assumptions behind this estimate
Transparent assumptions make it easier to identify where a contractual or production calculation may differ.
- Unused commitment equals total commitment less utilized amount, floored at zero.
- The annual fee rate is entered in basis points and converted by dividing by 10,000.
- The eligible fee base remains constant for the entered period.
- The selected year basis and eligible days must match the agreement.
Common questions
Calculator FAQ
What is a commitment fee?OpenClose
It is a contractual fee commonly charged on eligible unused commitment for making credit capacity available, whether or not the borrower draws it.
How is an unused commitment fee calculated?OpenClose
A basic estimate is unused eligible commitment × annual fee rate × eligible days ÷ year basis. The agreement determines exclusions, tiers and utilization treatment.
Does letter-of-credit usage reduce the unused fee base?OpenClose
It may. Some agreements count LC or swingline exposure as utilization or apply separate fee rules. The executed terms control the treatment.