Business Line of Credit Calculator
See what a draw costs before you take it. Enter your limit, the amount you need and your rate.
Show the full payment schedule
| Month # | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| Enable JavaScript to build the schedule. Your payment and total cost are already worked out. | ||||
Your limit is not what you pay for
Interest is charged on what you draw. A $100,000 limit with $25,000 drawn costs you the same as a $25,000 loan at the same rate, and the remaining $75,000 sits there without accruing anything.
The one thing to check is whether your line carries a monthly or annual maintenance fee, because that applies whether you use it or not. Ask about it before you sign. It is the only cost an idle line can carry, and it is the difference between a reserve that is free to hold and one that is not.
Every draw adds its own payment
This is the part a loan calculator cannot show you, and it is where owners get caught. Each draw repays on its own schedule. Take a second one while the first is still running and you are making both payments at once.
A $25,000 draw over 12 months at 7.1% is $2,164.32 a month. Draw another $25,000 two months later and you are paying roughly $4,328.64 a month until the first one clears. The combined balance only has to stay inside your limit, so the limit will let you reach a payment your cash flow will not.
Run each draw through the calculator separately and add the payments together. That total is the number your account has to cover.
Why the rate field starts at 7.1%
It is a sample so the calculator opens with working numbers, not a quote, and your own rate will be different. If you have already been quoted one, put that number in instead. Our business loan calculator explains where the default comes from.
What your limit depends on
Your limit comes from monthly revenue, how long you have been in business and how steady your deposits look, rather than your credit score alone. At FundBetter, most approvals start around a 500 personal credit score, $15,000 a month in revenue, and six months in business, and a business line of credit generally runs from $5,000 to $5 million. Repaid principal returns to your available credit, so the line is ready again without a new application.
If a single fixed payoff suits you better than a revolving limit, compare it against a short-term business loan before you decide.
Questions about line of credit payments
How do I calculate the payment on a business line of credit?
You calculate it on the amount you draw, not on your limit. A $25,000 draw at 7.1% repaid over 12 months comes to $2,164.32 a month. Your limit sets the ceiling on what you can take, and it has no effect on the payment until you actually draw against it.
What does an unused line of credit cost?
No interest, because interest is charged on drawn principal only. Confirm whether your line carries a monthly or annual maintenance fee, though, because that applies whether you draw or not. Ask before you sign so you know what an idle line costs you.
Can I have more than one draw open at once?
Yes, as long as the combined outstanding balance stays within your approved limit. Each draw is repaid on its own schedule rather than being rolled into a single balance, so they run side by side until the earlier one clears.
Does repaying a draw free the credit back up?
Yes. Principal you repay returns to your available credit, so the same line covers your next gap without a new application. That is the difference from a term loan, which closes once it is repaid.
What limit could I get?
Lines through FundBetter generally run from $5,000 to $5 million. Your limit comes from monthly revenue, time in business and how steady your deposits look, rather than your credit score on its own. Most approvals start around six months in business, $15,000 a month in revenue and a 500 personal credit score.
Find out what your limit would be
Checking takes a couple of minutes and uses a soft credit pull. Once a line is open, a draw can reach your account in as little as 24 hours.