Business Line of Credit Calculator
Estimate what it costs to pay off a business line of credit. Enter the amount you've drawn, the rate, and how long you'll take to repay it — see the monthly payment, total interest, and a full payoff schedule. Free, no signup. A line of credit is revolving, so you only pay interest on what you've actually drawn.
Monthly payment
$2,353.67
- Total interest
- $6,488.15
- Total cost (principal + interest)
- $56,488.15
Export the schedule
Estimates only, for planning. Actual payments depend on your lender's rate, fees, and compounding. Not financial advice.
Why use this generator
- See the monthly cost to pay off a drawn balance over a set period.
- Compare carrying a balance at a higher rate vs a term loan.
- Plan a payoff timeline for a seasonal or bridge draw.
- Estimate total interest before you tap the line.
How it works
- 1Enter the loan amount, the annual interest rate (APR), and the term.
- 2See your fixed monthly payment, total interest, and total cost update instantly.
- 3Open the amortization schedule to see how each payment splits between principal and interest.
- 4Adjust the numbers to compare offers — then export the schedule (Documents Pro) to share with a lender.
Frequently asked questions
- How is a line of credit different from a term loan?
- A line of credit is revolving: you're approved for a limit, draw what you need, and pay interest only on the drawn balance — then borrow again as you repay. A term loan hands you the full amount up front on a fixed schedule. This calculator estimates the payment to amortize (pay off) a drawn balance over a period you choose.
- Don't lines of credit usually charge interest-only payments?
- Often, yes — many lines let you pay only the interest on the drawn balance while it stays open, which keeps the principal outstanding. This tool instead models a full payoff (principal + interest) over your chosen term, so you can see what it actually takes to clear the balance rather than carry it.
- Why are line-of-credit rates higher?
- Lines of credit are flexible and often unsecured or lightly secured, so lenders price in more risk — rates typically run above a comparable secured term loan, and some lines add draw or maintenance fees. Test your quoted rate here, and compare the total interest against a term loan for the same balance.
Applying for financing? Estimate what your business is worth with the Business Valuation Calculator, check what you need with the Business License Checklist, and get your free EIN.