Business Line of Credit Calculator
A line of credit only costs you money when you actually draw on it. This tool shows what a single draw will cost over a given payoff window, including any per-draw fees.
Using 40% of your line
Bank lines of credit average 9–18%. Online lenders often charge 18–36%.
Charged once per draw, deducted from your draw or added to balance.
Email me my results
Get your saved calculation plus a 1-page funding cheat sheet. No spam, unsubscribe anytime.
How this calculator works
- 1
Enter your approved credit limit and the amount you plan to draw right now.
- 2
Add the APR and any per-draw fee your lender charges (typically 1.5–3% of the draw).
- 3
Pick how many months you'll take to pay it back. We compute your monthly payment, total interest, and a fee-adjusted effective APR.
Numbers look good?
See what your business actually qualifies for. It won't impact your credit score.
Frequently asked questions
Do I pay anything if I don't draw?▾
Most business lines of credit have no monthly fee when drawn at zero, though some charge a small annual maintenance fee. Read the agreement carefully.
How is a line of credit different from a credit card?▾
Lines of credit usually have lower APRs, larger limits, and no rewards. They're better for predictable cash-flow gaps; credit cards are better for everyday expenses you can pay off monthly.
What is a 'draw fee'?▾
Some lenders charge a flat percentage every time you draw funds — often 1.5% to 3%. It's effectively pre-paid interest, so we factor it into your effective APR.