Project Finance Cost Calculator

This tool is designed to help you estimate the total debt fees associated with securing project finance. Whether you’re planning a large infrastructure project, renewable energy initiative, or any other capital-intensive venture, this calculator provides a clear breakdown of the fees you can expect to pay.

By inputting key details about your financing structure, you’ll get a detailed summary of upfront fees, ongoing fees, and total debt costs. This will help you make informed decisions and plan your budget effectively.

The fees included in the calculator are typical for project finance, but it’s important to note that not all fees may apply to every project. Project finance fees can vary depending on the lender, project type and complexity, the risk profile and geographic location.

The lender fees (*) listed below are indicative ranges and can vary based on the specific deal. These fees are typically negotiated as part of the financing agreement.

Understanding the Results

Key costs of project finance:

1. Loan Amount: Total amount of debt financing required.
2. Equity Contribution: Amount of equity provided by sponsors/investors.
3. Debt-to-Equity Ratio: Ratio of debt to equity (e.g., 70:30 or 80:20).
4. Loan Tenor: Duration of the loan (e.g., 10, 15, or 20 years).

Lender fees:

Lenders specializing in project finance for large-scale projects (typically $100M+) typically charge the following fees:

5. Arrangement Fee: 0.5% – 2%^* of the total loan amount, charged for structuring and arranging the financing.
6. Underwriting Fee: 0.5% – 1.5%^* of the loan, for guaranteeing the syndication of the loan.
7. Commitment Fee: 0.25% – 1%^* per annum on undrawn amounts, charged until funds are fully disbursed.
8. Agency Fee: 50,000−50,000−200,000^* annually for administrative services during the loan term.
9. Syndication Fee: 0.25% – 1%^* of the loan amount, if the loan is syndicated to other lenders.
10. Legal/Advisory Fees: 500,000−2M+^*, covering legal, technical, and environmental due diligence.
11. Monitoring Fee: 50,000−150,000^* annually, for ongoing project oversight.
12. Prepayment Fee: 1% – 3%^* of the prepaid amount, if the loan is repaid early.
13. Breakup Fee: 0.5% – 1%^* of the loan amount, if the deal falls through.
14. Exit Fee: 0.5% – 1%^* of the loan amount, charged upon repayment or refinancing.

Other debt costs:

15. Insurance Costs: For project risk mitigation. Typically a % of the project value or loan amount.
16. Hedging Costs: For interest rate or currency risk management. Usually a % of the hedged amount (e.g., interest rate or currency swaps).
17. Third-Party Consultant Fees: For technical, environmental, or legal reviews. Fixed USD amount or % of project costs.

Need tailored financing?

Apply through AltFin for access to private project finance starting at $250M+.

• Upfront fees (also called borrowing costs) include due diligence, legal, and other expenses paid before securing financing.
• Total debt costs (formal term: cost of debt) cover interest + lender fees like arrangement or underwriting charges (excludes equity).
• Debt + equity inputs represent your capital stack—the layers of financing (senior debt, mezzanine, equity).
• All project expenses combined are referred to as total project cost (TPC) in financial models. these are capital + financing costs combined.
• Ongoing fees (e.g., commitment fees) are annual charges for undrawn loan amounts or monitoring.
• Insurance/hedging costs mitigate risks like currency fluctuations (risk mitigation fees).
• Legal/consultant fees fund third-party reports (due diligence) required by lenders.