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Business Line of Credit Calculator: Estimate Payments

Use our calculator to estimate the total costs of a business line of credit.

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Ryan Brady, CFP®
Written by 
Ryan Brady, CFP®
Ryan Brady, CFP®
Lead Writer & Content Strategist
8 years of experience
Expertise
  • Small-business lending
  • Insurance
Ryan Brady is a CFP® professional and lead writer at NerdWallet covering small-business lending and insurance. Ryan enjoys simplifying complex finance topics to help entrepreneurs make smarter decisions.
Before joining NerdWallet, Ryan ran a successful online retail business, giving him firsthand knowledge of the challenges and opportunities small-business owners face.
His work has appeared in TechCrunch, MarketWatch, Yahoo, Nasdaq and more.
He is based in Fort Myers, Florida.
Published in MarketWatchMorningstarNasdaq.com
Lead Writer & Content Strategist
Sally Lauckner
Edited by 
Sally Lauckner
Sally Lauckner
Managing Editor
18 years of experience
Expertise
  • Business financing
  • SBA loans
  • starting a business
Sally Lauckner is an editor on NerdWallet's small-business team. She has more than a decade of experience in online and print journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.
Managing Editor
Randa Kriss
Co-written by 
Randa Kriss
Randa Kriss
Senior Writer & Content Strategist
11 years of experience
Expertise
  • Small business
  • business lending
  • business banking
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured in The Washington Post, The Associated Press, MarketWatch and Nasdaq, among other publications. She has also hosted a webinar as part of the SBA's 2024 National Small Business Week Virtual Summit. Randa is passionate about helping small-business owners make educated financial decisions, especially when it comes to affordable funding. She is based in New York City.
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Senior Writer & Content Strategist
A business line of credit allows you to borrow money up to a set amount (called a credit limit) and only pay interest on the money you borrow. You then repay the funds — typically weekly or monthly — and can continue to take more out as you pay down your balance.
The cost of a business credit line depends on your withdrawal amount, repayment term and annual percentage rate (APR).
Use our business line of credit calculator to estimate payments and interest costs.

How to use the business line of credit calculator

As you compare small-business loan options , estimate the total financing costs to make sure you can afford to take on new debt.

1. Enter your information

  • Withdrawal amount. The amount of money you draw from your credit line. Remember that you’re only charged interest on the funds you withdraw and not on your total credit limit.
  • Repayment term (in months). The time it takes to repay the money you borrowed in full.
  • Repayment frequency. How often (weekly or monthly) you’ll have to make payments to your lender.
  • Annual percentage rate. The annual cost of financing, including interest and fees . Use this rate to compare costs of different lines of credit.
Note that lenders charge interest in different ways. Some lenders may charge simple interest, some charge interest as a factor rate , and others charge a weekly or monthly fee on your outstanding balance.
You’ll always want to calculate interest and fees into an APR to get the best understanding of how much a business line of credit costs.

2. Calculate your results

  • Monthly or weekly payment. The amount you’ll pay your lender each period, including principal, interest and fees.
  • Total payments. The total of all the payments you’ll make on your line of credit, which includes the amount you borrowed, plus interest and fees.
  • Total interest paid. The total amount of interest you’ll have paid at the end of your repayment term. This is the total cost your lender is charging you to borrow from them. If you can repay early, you may be able to save on interest costs. Just watch out for prepayment penalties.
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Nerdy Tip
This calculator assumes a fixed interest rate. If your business line of credit has a variable rate (many do), your payments and costs can change over time. Play around with the APR slider to see how different rates could affect what you pay.

How much do you need?

See Your Loan Options

with NerdWallet Small Business

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Is a business line of credit right for me?

A business line of credit can be a good option for managing cash flow gaps, covering short-term financing needs and serving as an emergency fund .
If you can qualify for a credit line with reasonable rates and terms, it may be helpful to keep this financing in your back pocket. But be aware that you may have to pay annual or inactivity fees.
Before you make any decisions, however, you’ll want to use our business line of credit calculator to estimate potential costs to determine whether you can afford to take on new debt. And if you opt to move forward, make sure to research and compare options to ensure you’re getting the best deal for your business.
Learn more about business lines of credit:
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