A business line of credit works differently from a standard loan: you only pay interest on what you’ve actually drawn, not your full credit limit, and you can draw and repay repeatedly within the limit. This calculator shows how long it will take to pay off your current drawn balance, how much interest that costs, and how much credit you still have available.
| Time to pay off drawn balance | – |
| Total interest on this draw | – |
| Minimum payment to ever pay it off | – |
Rates on business lines of credit vary a lot by lender type — often roughly 8–22% APR at banks and credit unions, and considerably higher through some online lenders, so use your actual rate rather than the default. Most lines also carry a variable rate tied to a benchmark like the prime rate, so your real payment can shift over time even if you don't draw any more. If you're weighing a line of credit against a fixed-term loan instead, compare it with the loan calculator.
Frequently asked questions
Do I pay interest on my full credit limit?
No. You only pay interest on the amount you've actually drawn, not your unused available credit.
Can I draw and repay more than once?
Yes, that's the main difference from a term loan — as you repay the drawn balance, that credit becomes available to draw again, up to your limit.
Why did my required payment change even though I didn't draw more?
Most business lines of credit carry a variable interest rate, so your payment can change when the underlying benchmark rate moves, even with no new draws.
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This calculator gives estimates for information only and is not financial advice. Actual rates, fees and terms vary by lender.