Warehouse Line Cost Calculator

Warehouse lines have unused fees plus interest on drawdowns. This calculator sizes all-in annualized cost.

Commitment amount

Average outstanding

Interest rate on balance

Unused fee rate

Total annual cost

$4,655,000

Interest on drawn balance

$4,550,000

Unused fee cost

$105,000

Effective rate on commitment

4.66%

How the math works

Warehouse total cost = (drawn × rate) + (undrawn × unused fee). Utilization ratio drives blended economics.

High utilization = good (unused fee low) but raises concentration risk. Low utilization = wastes commitment fees. Sweet spot: 60-80% utilization.

How to Use

Enter commitment amount.
Enter average outstanding balance.
Enter interest rate.
Enter unused fee rate.
Read total annual cost.

Frequently Asked Questions

What is unused fee?

Fee on the undrawn portion — 0.25-0.50% annually is typical. Compensates lender for committing capacity even when you don't draw.

Typical interest?

SOFR + 150-400bps, depending on borrower credit and collateral quality. Life-co loans in warehouse: SOFR + 100-175. Bridge loans in warehouse: SOFR + 300-450.

How's it structured?

Revolving with collateral advance, often secured by pledged loans. Lender conducts collateral review quarterly. Margin call risk if collateral deteriorates.

How do I benchmark this?

Benchmark against industry data from NCREIF, IREM, Yardi Matrix, CoStar, or RCA. Institutional operators also benchmark internally across their own portfolio to identify operating outliers. A single number means little; the trend and the peer comparison mean everything. Run quarterly benchmarks and note deviations that exceed 10% — those warrant investigation.