Business Line of Credit Calculator
Enter the drawdown, rate, fees and repayment schedule.
Total cost over the period
β
Enter values above
Interest paid
β
Fees paid
β
Balance at the end
β
Effective annual cost
β
Average balance
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Credit limit ($) | 50000 |
| Drawdown amount ($) | 30000 |
| Interest rate (%) | 9.5 |
| Monthly account fee ($) | 25 |
| Months of use | 6 |
| Repayment per month ($) | 5000 |
| Result | Value |
|---|---|
| Total cost over the period | $1,003.45 |
| Interest paid | $853.45 |
| Fees paid | $150.00 |
| Balance at the end | $853.45 |
| Effective annual cost | 6.69% |
| Average balance | $17,967.32 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Business Line of Credit Calculator
- Credit limit ($) β default 50000
- Drawdown amount ($) β default 30000
- Interest rate (%) β default 9.5
- Monthly account fee ($) β default 25
- Months of use β default 6
- Repayment per month ($) β default 5000
- Press Calculate to update the results instantly.
Frequently asked questions
Interest accrues daily on the outstanding balance, so paying down early genuinely reduces the cost. Most facilities charge a small monthly or annual fee whether or not you draw.
Only the drawdown costs interest. The limit matters for the fee calculation and for whether the facility is large enough for your working-capital cycle.
When the need is seasonal or unpredictable. A line flexes up and down with working capital; a term loan is cheaper per dollar but you pay interest on the whole amount from day one.