Frank Lampard's side will host the Germans in West London on Tuesday for the first leg of their Champions League last-16 tie.
And three-time Champions League winner Kovacic believes the Blues are more than capable of causing an upset.
"Bayern has a whole squad with great players, so it will be difficult tomorrow but that's normal at this stage in the Champions League," said Kovacic.
"We have a good team, they do as well, but there is not much difference between us and Bayern.
"The Champions League is beautiful to play and we can show ourselves again, like we did against Tottenham.
"It will be tough but we are prepared. Every one of us likes these big games, so I hope we will enjoy the game.
"At Stamford Bridge we had some tough moments this season. Teams come here, stay back and it's difficult to go through them, but Bayern won't do that.
"They will play as we will. It will be an open game which we will enjoy."