Business line of credit payment calculator.

How it is calculated

Interest-only: balance × annual rate ÷ 12. Draw then repay: interest-only for the draw period, then a level payment that clears the balance over the repayment months. Interest plus a percentage: each month you pay that month's interest plus your chosen percentage of the current balance, or the minimum payment if that is higher, until the balance is zero. Interest is figured monthly at one-twelfth of the annual rate; many lenders accrue interest daily, so your statement may differ slightly. The balance is held constant, with no new draws or fees.

Worked example

$50,000.00 at 12%: interest-only is $500.00 a month and the balance never falls. After a 24-month draw period, repaying over 36 months is $1,660.72 a month, with $21,785.76 of total interest. Paying interest plus 1% of the balance (minimum $100.00) starts at $1,000.00, takes 299 months and costs $46,966.11 in interest.

Sources and limits

This is the standard loan payment formula applied to the balance you enter, with no lender data. Your agreement controls the interest calculation, draw and repayment periods, fees and minimum payment rule. For fees, unused-line charges and seasonal draws use the business line of credit calculator.

FAQ

How is the payment on a business line of credit calculated?

It depends on your agreement: interest-only during a draw period is the balance times the rate divided by 12; after that, many lines amortize the balance, or require interest plus a percentage of the balance.

Does an interest-only payment reduce what I owe?

No. The balance stays the same until you pay principal.

Why might my statement differ?

Lenders often accrue interest daily on the actual balance and may add fees. This page uses a constant balance and monthly interest.

What if the percentage is zero?

Then you pay only interest, or the minimum payment, whichever is higher.