Business Line of Credit Calculator

Estimate the carrying cost of a drawn business credit line separately from a principal-repayment plan. Undrawn credit does not accrue interest in this model.

Enter all amounts in one currency. Currency selection changes labels, not amounts or jurisdiction. No conversion is performed.

Range: 0–1,000,000,000
Range: 0–100
Range: 1–600; whole numbers

Enter your values to see an estimate. Enter 0 for amounts that do not apply.

How this calculator works

Monthly interest-only cost equals drawn balance × annual nominal rate / 12 and leaves that balance outstanding. A separate amortizing payment retires the balance over the entered repayment months.

Worked example

A business drawing 24,000 at a 12% nominal annual rate incurs 240 in monthly interest-only cost, with 24,000 principal still owed. A separate 0% principal-repayment plan over 24 months would pay 1,000 monthly.

Assumptions and limits

Excludes undrawn commitment fees, draw fees, daily interest, borrowing-base tests, covenants, taxes and variable-rate resets. Does not forecast business cash flow or establish lender eligibility. Interest-only carrying cost does not repay principal.

How to choose your inputs

Start with the balance needed to cover a specific working-capital gap, such as paying suppliers before customer receipts arrive. Enter the drawn amount rather than the facility limit and separate any commitment or draw fees from the modeled interest. Use the repayment term for a deliberate paydown scenario, not as an assumed lender promise to renew the line.

How to interpret your result

Interest-only cost measures carrying the balance; it does not show whether the seasonal cash cycle will produce money to repay it. Compare the amortizing payment with the timing of customer receipts and test a longer collection delay separately. Borrowing availability, covenants and required reporting depend on the actual facility rather than this calculation.

Primary references

This educational estimate uses your inputs. It is not individualized financial, tax, insurance, or investment advice, a lender offer, approval decision, or a promise of future results.

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