All-in Cost

Short definition

All-in cost converts the reference rate, margin, fees and compensating balances into one annual rate. That is the decision number, not the coupon line.

Detailed explanation

Upfront fees are spread over the tenor (or enter EIR). Commitment fees run on unused balances; arrangement fees are paid at signing. Compensating deposits cut net proceeds and lift all-in.

After-tax all-in = all-in × (1 − T) only to the extent the shield is cash interest and taxable capacity. On FX loans, omitting expected FX cost (or hedge cost) makes the comparison incomplete.

Why it matters for the CFO

Debt versus equity, pack selection and refinancing are done on this number. “Low margin” can be high all-in.

How it is calculated

All-in ≈ Referans + Marj + Yıllıklaştırılmış ücretler ± zorunlu bakiye etkisi

Variables in the formula

• All-in: Total annual loan cost

How to read it

All-in versus EIR is often a simplification gap; prefer EIR when you can. Do not drop FX all-in into Kd without translating it.

Numerical example

Reference 45%, margin 6%, annualised fees 1%, compensating-balance effect 0.5% → all-in ≈ 52.5%.

Definitions are educational. They are not investment, credit or tax advice.