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Business Line of Credit Calculator

Calculate Your Payments and Total Cost of Borrowing

Small Business Line of Credit Qualifications

  • Time in Business:6+ Months
  • Annual Revenue: $200,000+
  • Credit Score:575+

Get pre-approved today, so you have the funds you need tomorrow.

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Table of Contents

  • Business Line of Credit Calculator - How Much Can You Afford?
  • What is a Business Line of Credit?
  • Understanding the Repayment Structure
  • How Line of Credit Calculators Work
  • Using Our Line of Credit Calculator
  • Understanding Your Results
  • Final Thoughts

Business Line of Credit Calculator - How Much Can You Afford?

When you need working capital, there are many options available to your business. In most cases, you know exactly what it’s for; you understand the scope, the timeline and every other detail necessary to make the investment a success.

But what about when a project or need is a little more fluid and undefined? This is where a business line of credit is quite valuable.

With this line of credit calculator, we’ll share the details around business lines of credit and how you can use this tool to see how affordable your credit line offer truly is.

Let’s get started at the beginning with how a business line of credit actually works.

What is a Business Line of Credit?

A business line of credit provides your company with access to funds to spend as you need them. You withdraw the exact amount of funds your business needs while only paying interest against the capital you’ve used. Another feature of a business line of credit is that you are never obligated to withdraw the entire credit line amount.

Just as we laid out in the introduction when your business needs recurring access to funds for a project or goal without an end date, a business line of credit could be the best solution for you.

While there are major benefits to using a business line of credit, like all financing products, there are some drawbacks. For example, the lending company you choose to work with may require you to post collateral to secure the line.

Business lines of credit do function similarly to credit cards, however, they, don’t carry any annual fees. It’s also possible (depending on the lender) that you may have to re-submit the documents and paperwork, including current bank statements, whenever you want to make a withdrawal from the credit line.

Understanding Your Repayment Structure with a Line of Credit Interest Calculator

Before securing any business line of credit, you need to fully understand exactly what you’re business will be expected to pay. There are three specific cost factors that you need to be aware of before making any decision.


Unlike a traditional term loan or short-term loan, business lines of credit don’t necessarily have terms. When you come to terms on a loan product, you’re given your funds all at once, along with an accompanying repayment schedule.

A business line of credit, on the other hand, only requires payment once you’ve withdrawn a certain amount from your credit line. As you find with a term loan, a business line of credit will provide repayment parameters once the withdraw threshold has been reached.

Depending on the lender you’re working with, your repayment period can extend anywhere from 12 months to 10 years. While the average term is 24 months, this is all subject to your unique qualifications as well as your lender’s policies and preferences.

Interest Rates

As we described in the previous section, interest is only applied to the funds you withdraw, not the total line of credit. Once you do draw from your line of credit, your interest rate will become important to fully understand. This is where using the business line of credit calculator becomes very helpful.

Aside from your own qualifications, where you secure your business line of credit will also impact your interest rate. Lines of credit from banks historically carry the lowest rates while alternative lenders, due to the increased risk they’re taking on, often assign higher rates.

It’s important to remember that even though a bank rate may be lower at face value, the overall interest payments over the course of the line of credit through an alternative lender could be lower. This is due to the fact that alternative lenders use a condensed term (12-24 months), you’re less likely to overpay, in total, for the funds you need. While this is not the case for every line of credit, this is necessary to recognize.


The most common fees attached to a business line of credit are application fees, origination fees and/or a draw fee (further information on all of these fees can be found here.)

Because fees aren’t folded into your interest rates, it’s important to include them when determining your overall costs. By including your estimated fees into the line of credit payment calculator, you’ll come away with a much clearer picture of how much your business could be paying.

We’ll explore how a business line of credit calculator works in the next section, but the introduction of fees is one of the main reasons why using a business loan calculator is a wise thing to do.

How Business Line of Credit Calculators Work

Calculating APR (annual percentage rate) or total loan payments without using a small business loan calculator can be a challenge. While it’s possible to figure out on your own, of course, determining repayment terms is more accurate and convenient with the help of a line of credit interest calculator.

To learn more about the elements the business loan calculator uses to generate your calculation, let’s review the factors it uses:

  • The Principal Loan Amount
  • The Interest Rate
  • The Estimated Number of Payments
  • Associated Fees (origination fees, closing costs, etc.)

How to Use Our Business Line of Credit Payment Calculator

Interest rates and APRs are just one part of the overall loan agreement. To best compare your business line of credit options, you should also take into consideration the amount of time you have to pay back the line as well as any fees that could be assessed to understand the true cost of borrowing.

To calculate your monthly or weekly payments and the total cost over the life of your credit line, enter:

  • The credit line amount found in your offer. Depending on the total amount of funds you qualify for, your business can secure between $5,000 and $2,000,000.
  • The Estimated Interest Rate you were quoted. Depending on your creditworthiness, interest rates for a business line of credit can be as low as 6% and can go as high as 24%, with an average rate of 8%.
  • The Loan Term and Payment Frequency. While business lines of credit may not have a set repayment schedule, your lender may require more frequent payments on a weekly, rather than a monthly, basis for terms under 18 months.
  • Any fees quoted with your loan.

To see how much of an impact these factors have on repayment, adjust the loan amount, term and frequency.

Understanding Your Results

Using Fast Capital 360’s business line of credit calculator, you’ll have a much clearer sense of the actual cost of financing. Regardless of the type of credit line you’re looking to use, the outputs will be the same:

  • The weekly or monthly Payment
  • The Total Repayment Amount
  • The Cost of the Loan

To get a better idea of what these numbers mean to your credit line, click here.

With this information, it’s easy to evaluate how different line credit line amounts impact your overall costs.

The Final Calculation on Business Line of Credit Loan Calculators

As you begin the process of identifying the best business line of credit for your business, you should begin to notice how uncomplicated interest rates and APRs actually are. While fees can present an additional wrinkle when trying to lock down your total costs, it’s much easier to figure out your overall costs by using a business line of credit calculator.

While these calculators don’t provide or replace an official offer, loan repayment calculators are fantastic utilities to check your potential costs. Based on the calculations these tools provide, you’ll have a much better idea of how just how much your business can both secure and pay off.

Whether you’re looking for a credit line or are simply curious about what a credit line calculator could tell you, Fast Capital 360 has the information and detail you’ve been seeking. If you still have questions about your line of credit calculator results, our team of expert Business Advisors will be happy to guide you find the answers you’re seeking. Call us at (800) 735-6107 or click here to speak directly with one of our dedicated advisors.