Letter of credit fee calculator
Estimate a letter-of-credit commission from the LC amount, annual fee rate, eligible days and contractual day-count basis.
Letter-of-credit commission estimate
- LC amount
- $1,000,000.00
- Daily commission
- $41.67
- Fee-day fraction
- 90/360
Use this as an educational estimate. Actual charges may include minimums, tiers, issuance, advising, confirmation, amendment, handling, tax or correspondent-bank fees.
Calculation boundaries
Assumptions behind this estimate
Transparent assumptions make it easier to identify where a contractual or production calculation may differ.
- The commission equals LC amount × annual fee rate × eligible days ÷ selected year basis.
- The LC amount and annual fee rate remain constant for the entered period.
- The entered rate is a percentage, not basis points.
- The estimate excludes flat charges, minimum fees, taxes and other bank or correspondent commissions.
Common questions
Calculator FAQ
How is a letter-of-credit fee calculated?OpenClose
A time-based commission may apply the annual fee rate to the LC amount for the eligible days and day-count basis. The facility terms and tariff determine the actual charge.
Are LC issuance and confirmation fees the same?OpenClose
Not necessarily. Issuing, advising, confirmation, amendment and handling charges may be separate and may be paid to different banks.
Does an amendment change the LC fee?OpenClose
It can. An amount increase, expiry extension or other amendment may create additional commission or a flat amendment charge under the applicable terms and tariff.