Financing costs · Revolving credit
Unused revolving credit facility fee: calculation and example
The bank has approved 12 million RUB, the business uses only 4 million, yet pays more than interest on the funds drawn. We explain when an unused limit creates extra costs, how to calculate them and why a lower interest rate does not always mean a better-value credit facility.
What is an unused facility fee?
It is a contractual charge for the part of a credit facility that the company has not yet used. Interest and this fee usually have different calculation bases: interest is calculated on outstanding debt, while the fee applies to the unused balance as defined by the agreement.
For example, with an outstanding debt limit of 12 million RUB and debt of 4 million RUB, a simple model gives an unused balance of 8 million RUB. This may be the base for the fee. Repaying a drawdown reduces principal and increases the unused balance. Costs therefore need to be recalculated to account for both charges.
Bank documents may include a separate fee for establishing the limit and a recurring charge on its unused balance. Do not rely on the name alone: check what each charge covers, the amount to which it applies and when it accrues.
The overall cost may also include collateral valuation and insurance, account servicing and other expenses associated with the financing terms. List them using the documents for the specific offer.
Seven questions to ask before signing
- What is each charge called? Separate interest, one-off opening or limit establishment fees, recurring fees and charges for amending the terms.
- What is the calculation base? The maximum limit, current limit, unused balance or amount of an individual drawdown? These are fundamentally different amounts.
- Is the rate annual, monthly or per transaction? “1%” without a period and calculation base is insufficient to estimate costs. Monthly collection does not, by itself, mean a monthly rate.
- When does accrual begin and end? Compare facility opening, limit establishment, the drawdown period and termination of obligations. Do not confuse an accrual date with the date funds are debited.
- How are balances and days determined? Confirm when the balance is recorded, whether boundary dates are included, the year basis and rounding rules.
- Is there a minimum charge or a fee-free period? A minimum fee can change the result of a simple formula, especially when the unused balance is small.
- What does reducing or closing the limit cost? Confirm the notice period, approvals required, separate charges and the date accrual ends.
Ask for a calculation using a specific scenario: for example, a 12 million RUB limit, debt of 4 million RUB, then repayment of 2 million RUB on a specified date. This makes the terms much easier to compare than asking “what is your rate?”.
How to calculate the unused limit fee
If the agreement specifies an annual fee rate, a 365/366-day basis and accrual on the unused balance, the following model applies to an interval with unchanged parameters:
Interest is calculated separately using outstanding principal and the interest rate. If the debt, limit or rate changes, divide the period into intervals. Calculate each interval and add the results.
When a period crosses a year-end, use the contractual year basis for each part. Take the rules for including disbursement and repayment dates, rounding and any minimum charges from the agreement as well.
A loan interest rate of 24% and a fee of 1.5% do not mean the company pays 25.5% on the same amount. In our example, interest applies to debt of 4 million RUB, while the fee applies to the unused limit of 8 million RUB.
Example: why a 24% revolving credit facility can cost more than a 26% facility
Compare two illustrative offers. Both have a 12 million RUB limit and constant actual debt of 4 million RUB. The accrual period is 31 days, from 13 October to 12 November 2026 inclusive. The year basis is 365 days.
Offer A charges 24% annual interest on debt and a 1.5% annual fee on the unused balance. Offer B charges 26% interest on debt and has no unused balance fee. For a like-for-like comparison, assume all other costs and terms are identical. These are illustrative parameters, not the tariffs of specific banks.
| Indicator | Offer A | Offer B |
|---|---|---|
| Interest rate on principal | 24% per year | 26% per year |
| Fee on the unused 8 million RUB | 1.5% per year | None |
| Interest for 31 days | 81 534.25 RUB | 88 328.77 RUB |
| Fee for 31 days | 10 191.78 RUB | 0 RUB |
| Total costs compared | 91 726.03 RUB | 88 328.77 RUB |
Despite its lower interest rate, Offer A costs 3 397.26 RUB more over this period. A different usage pattern may change the result: higher debt increases interest but reduces the unused balance on which the fee accrues.
Principal repayment is not included in the cost table. Include it separately in the cash flow calendar. Allocate one-off fees and related expenses to a comparable period; a one-month comparison does not replace a calculation covering the full planned use of the facility.
Interest and unused facility fee calculator
Calculate one interval during which the limit, debt and rates remain unchanged. Enter the first and last accrual dates under your agreement: both selected dates are included. The calculator uses actual days and a 365/366-day year. In this model, interest and the fee accrue over the same selected interval.
The model does not account for minimum fees, fee-free periods, changes in balances or rates within the interval, special contractual rules or the bank's daily rounding. Interest and fees are rounded separately at the end of the interval. For several intervals, add a one-off payment only once. The calculation is not a bank statement or a statutory total cost of credit measure.
How to reduce costs while keeping the cash buffer you need
1. Check how much of the limit you actually need
Consider peak funding needs, seasonal purchases, customer payment terms and a buffer for delayed receipts. Low usage in one month does not necessarily mean the limit is excessive. You can start by calculating your working capital funding requirement.
2. Compare savings with the cost of changing the terms
If reducing the facility lowers the fee, ask what the amendment costs and how it is documented. A separate charge for reducing the unused limit may absorb the expected savings. Also clarify in advance whether the previous limit could be restored later.
3. Do not draw unnecessary funds just to reduce the fee
In our example, drawing an unnecessary 1 million RUB for 31 days reduces the fee by 1,273.97 RUB but adds 20,383.56 RUB in interest. The net increase in the costs compared is 19,109.59 RUB. Besides cost, you must observe the contractual permitted use of funds.
4. Check charges against actual balances
Compare statements, disbursement and repayment dates, limit changes and the fee calculation. If figures differ, ask the bank for a breakdown showing the calculation base by date, rate, accrual days, rounding and contractual clause.
If new disbursements are suspended, separately establish the reason for the restriction and the terms governing continued fee accrual. Do not assume that a payment guarantees disbursement in all circumstances, or that suspension automatically cancels every fee.
Questions and answers
Does every revolving credit facility have an unused limit fee?
No. Its existence, amount and accrual procedure are determined by the specific financing terms. Check the documents you are signing and the tariffs applicable to them.
Does the fee stop accruing once all debt is repaid?
Not necessarily. If the facility remains open and the agreement charges a fee on the unused balance, zero debt does not, by itself, end that charge. Confirm the procedure for closing the limit and the date accrual ends.
Can I simply add the fee rate to the interest rate?
This is usually an incorrect comparison because the charges have different calculation bases. Calculate each in RUB using the same drawdown and repayment schedule, then add the costs.
When can an offer with a fee be better value?
When savings on interest and other costs exceed the extra charge for the unused balance under your usage pattern. Establish this through calculation, rather than the presence or absence of a fee alone.
Can a debited fee be challenged?
First check its basis, calculation and compliance with the signed terms. The legal assessment depends on the substance of the charge and the circumstances, not just its name. A dispute requires the agreement, tariffs, statements and legal analysis.
Related articles
Sources and calculation assumptions
- SberBusiness Live: business credit facilities — product structure and the effect of fees on costs.
- Kuban Credit: general terms for “Aktiv-Tranzakt”, version effective from 2 July 2025, PDF — clauses 3.7, 3.9–3.10 and 3.12: separate charges, a 365/366-day basis and a possible fee for reducing the limit. This is an example of a contractual structure, not uniform terms across all banks.
Prepared on 13 October 2026. All rates and amounts in the examples are illustrative. Obtain the current offer terms and applicable version of the documents from the relevant bank.