Business Loan Calculators

Business Line of Credit Calculator

A business line of credit is a funding option for business owners looking for access to capital on an as-needed basis. Business owners can borrow money from their line of credit up to their limit, and replenish their available credit as they repay their debt. The lender charges interest only on the funds used, and the line of credit could be secured or unsecured, meaning you may or may not need collateral. Check out our business line of credit calculator below to see your options.

Using the business line of credit calculator

The line of credit payment calculator will generate an estimated monthly payment for a single draw on a line of credit. This will help you determine what size loan you could afford. It’s important to only take funding you can afford so you don’t pay late fees and face default on payments you can’t afford.

Here’s how to use the business line of credit calculator:

  • Step 1: Type in the amount of money you’d like to borrow from a business line of credit. This field reflects a single withdrawal, not your full credit line.
  • Step 2: Enter an interest rate.
  • Step 3: Select a repayment term. Remember that each withdrawal from a business line of credit typically comes with a term between 12 weeks and 24 months.

The result should show you the amount you would have to pay on a monthly basis until the end of the term. Having an idea of what it’ll take to get to a realistic monthly payment could help you negotiate terms with a lender.

Considerations for the business line of credit calculator

When using the line of credit payment calculator, remember that the tool only offers an example of your monthly payment based on the estimated interest rate you provide, without including any additional fees. Whether your actual interest rate is low or high can have a significant impact on your payment amount.

How does a business line of credit work?

A business line of credit offers you access to money that you can draw on when you need it. Unlike a term loan, funding with a line of credit is usually revolving, meaning you can draw on the funds and, when you repay the borrowed amount, your credit line increases to its original limit. Plus, you only pay interest on the money you borrow. In that sense, a business line of credit is more like a business credit card. However, a credit card typically has higher interest rates and fees than a line of credit would.

For business lines of credit, you can expect the repayment schedule to be on a 12- or 24-week schedule repayment term with payments made on a weekly or monthly basis (with interest). In most cases, a line of credit will offer up to $250,000, but it can range from $5,000 to $1 million.

If you get your business line of credit from a traditional bank, your rates and terms could be better. However, banks tend to offer lines of credit to established businesses. Startups and newer businesses, on the other hand, might want to explore online lenders for their business line of credit. Online lenders can offer more flexible terms and quicker funding, but they might have higher rates.

Business line of credit payments

The details of drawing on and paying off your line of credit may vary from lender to lender but the general process is usually pretty similar across all options. Once you’re approved for a line of credit you have access to that full amount.

Whichever amount you choose to borrow will be considered a withdrawal from your credit line, and you’ll have a set amount of time to repay it plus interest. If your credit line is secured, you’ll need to provide collateral in the form of business or personal assets.


The term for your line of credit is how long you have to repay the amount you borrow. They will vary depending on the lender and the specific line of credit you get. Each time you borrow from your credit, the transaction will have its own terms. The repayment schedule will likely be on a 12 or 24-week schedule, and your lender will likely ask you to make payments on a weekly or monthly basis with interest.


The interest on your loan is important to consider when you’re calculating your payments. It can vary significantly depending on the lender, but the good thing to know is you’ll only have to pay interest on the amount of your credit line that you actually use.

The higher your interest rate is, the higher each of your weekly or monthly payments will be. Be sure to use the right interest rate when you use the business line of credit calculator. Average APRs for a business line of credit can be as low as 8% or as high as 80% or more.


The fees associated with your business line of credit will vary by lender and they aren’t included in our business line of credit calculator. These fees might be rolled into your weekly or monthly payment. Some common fees you may pay include an origination fee for processing the loan, an annual or monthly maintenance fee, a renewal fee or a draw fee.