Business Line of Credit Calculator

Thinking about drawing on a business line of credit? Enter the draw amount, APR, and how long you'll carry the balance to see the monthly payment, total interest cost, and what the draw really costs you. Runs entirely in your browser.

💰 Draw details

Amount drawn ($)

APR (%) annual rate

📅 Repayment

Draw period (months)

Origination / draw fee ($, optional)

Simplified estimate. Most lines of credit charge interest-only payments during the draw period on the outstanding balance. Real products may add maintenance fees, variable rates, or minimum draws — always read the agreement. This is math, not financial advice.

Frequently Asked Questions

How is interest on a business line of credit calculated?

Interest accrues only on the amount you've actually drawn, not the full credit limit. The monthly interest charge is roughly: drawn balance × APR ÷ 12. Pay the balance down and the interest drops with it — that's the main advantage over a term loan.

What's the difference between a line of credit and a term loan?

A line of credit is revolving: draw, repay, and draw again up to your limit, paying interest only on what you use. A term loan gives you a lump sum once with fixed amortizing payments. Lines suit uneven cash flow; term loans suit one-time purchases.

What does APR mean for a line of credit?

The annual percentage rate is the yearly cost of borrowing expressed as a percentage of the drawn balance. A 9.5% APR costs about 0.79% per month on whatever you currently owe. Watch for variable APRs that move with the prime rate.

Are there fees besides interest?

Often: origination or draw fees (1–3% is common), annual maintenance fees, and sometimes inactivity fees if you don't draw. Enter any upfront fee above and the calculator folds it into your total cost.

Is this financial advice?

No — it's an arithmetic estimate to help you compare options. Talk to your lender or a financial professional before borrowing.