Debt / Loan Fair Value Calculation Excel Template
Originally published: 26/12/2018 09:24
Last version published: 23/09/2019 07:28
Publication number: ELQ-50396-8
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Debt / Loan Fair Value Calculation Excel Template

Extract remaining debt / loan cash flows, derive market rates used to discount cash flows to determine fair value


User-friendly Excel tool for determining the fair value of a debt facility or loan and other key metrics.


The template calculates the fair value of a debt facility / loan by extracting the remaining cash flows to maturity of the loan and discounting these cash flows at the market interest rates at the valuation date. The market rates are derived by adding the option adjusted spread (reflective of the credit risk of the loan) and any illiquidity premium to the Government bond yield curve, which is assumed to be the risk-free rate. The resulting sum of discounted cash flows is the implied fair value for the loan.


The tool computes a number of key loan / debt metrics including:
- Debt facility / loan fair value;
- Debt facility / loan fair value as a percentage of book value;
- Debt facility / loan duration;
- Debt facility / loan yield to maturity;
- A chart plotting the cumulative debt facility / loan cash flows, yield curve and discounting rates.

The key user-defined inputs of the tool include:
- Loan reference name
- Currency
- Valuation date
- Loan balance at valuation date
- Loan type (amortising or bullet)
- Maturity date
- Payment frequency (Monthly, Quarterly, Semi-annually, Yearly)
- Interest rate
- Government Bond Yield curve
- Option adjusted spread
- Illiquidity premium (if required)
- Prepayment rate (if required)


The template contains, 6 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The only tab to be populated by the user is the input tab ('i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the template outputs presented in 'o_Results'.
.System tabs include the following:
- 'Front Sheet' containing a disclaimer, instructions and contents;
- Checks dashboard containing a summary of checks by tab.


Other key features of this tool include the following:
- The tool follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
- The tool can calculate fair values for debt facility / loans with a maximum maturity of 20 years from valuation date;
- The template can calculate fair value for a Bullet-type debt / loan (all principal is paid on maturity date) or an amortising debt / loan (principal is paid as part of the periodic instalments across the life of the loan);
- The template calculates interest and loan balance on a daily basis for a maximum of 20 years (+7,300 rows);
- The daily interest rates are derived from the yield curve points using linear interpolation;
- Loan/Debt name, currency, valuation date, etc. are customisable;
- The tool includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors;
- The tool includes checks and input validations to help ensure input fields are populated accurately.


If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a message through the Eloquens site or contact us on:


We are a small team of financial modelling professionals with experience working in Big 4 Business Modelling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow best practice financial modelling guidelines and assist individuals and businesses with common financial planning and analysis processes.

We are keen to make sure our customers are fully satisfied with the tools / models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase. We are also always keen to receive feedback so please do let us know what you think of our products/offering by sending us a message or submitting a review.

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Further information

Calculation of Debt facility / loan market fair value


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Discussion feed for Debt / Loan Fair Value Calculation Excel Template

The user community and author are here to help. Go ahead!

  • Eldan Usubakunov
    Hello. Could you please share a password to unprotect the file?
    If you choose an annual repayment schedule, there is an error in CF sheet.
    1arrow_drop_uparrow_drop_downReply reply
    • Projectify Team
      Hi Eldan, thank you for downloading our Loan Fair Value tool and your comment above. We have amended for both and uploaded a new version of the tool (v008) which should be available shortly. You should be receiving a notification from Eloquens once available for download.

      Projectify Team
      arrow_drop_uparrow_drop_downReply reply
    • Peter Szostak
      Hi there. I'm getting an error for maturity date saying "Date must note be less than valuation date or more than 1 year from valuation date". The video shows a maturity date several years out from the valuation date. Please advise. Thank you.
      arrow_drop_uparrow_drop_downReply reply
      • Projectify
        Hi Peter, thank you for reaching out, Could you please send us the version you have by email to I had a look at the version uploaded on Eloquens (v008 - NPP) and not getting the same error. The uploaded model allows you to enter a maturity date anywhere between 0 days to 20 years from the valuation date.
        arrow_drop_uparrow_drop_downReply reply
      • Gladys Fernander
        Hi. I am populating the assumptions tab but the Results tab is not showing anything.
        arrow_drop_uparrow_drop_downReply reply
        • Projectify Team
          Hi Gladys, hasn't happened before, try make sure that automatic calculations are on in Excel (or press F9) and that all assumption inputs in section 1.1 are filled in.
          arrow_drop_uparrow_drop_downReply reply

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