Business Line of Credit Calculator
See what a draw really costs. Enter the amount, rate, and term to estimate your weekly or monthly payment, total repaid, and line of credit interest, then compare 26-week vs 52-week repayment. Free, instant, no signup.
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Line of Credit Payment Calculator
Standard amortization on your draw: interest accrues only on the outstanding balance, so every payment shrinks what the next one costs.
Same Draw, Weekly Repayment: 26 Weeks vs 52 Weeks
Many weekly-repay online lines of credit price each draw this way. Both rows recalculate from the draw and rate you entered above.
| Term | Weekly payment | Total repaid | Total cost |
|---|---|---|---|
| 26 weeks | $1,007.12 | $26,185 | $1,185 |
| 52 weeks | $526.17 | $27,361 | $2,361 |
The longer term roughly halves the payment but leaves the balance outstanding longer, so the same draw costs more in total interest. For illustration only, not an offer or financial advice.
What is a business line of credit?
A business line of credit is a reusable credit limit. You draw only what you need, pay interest only on the outstanding balance, and as you repay, that capacity becomes available to draw again. It works like a revolving safety net for payroll gaps, inventory buys, and slow-paying invoices rather than a one-time lump sum.
How do you calculate line of credit payments?
Divide the annual rate by the number of payments per year to get the periodic rate i, then apply the
standard amortization formula: payment = draw × i / (1 - (1 + i)^-n), where n is the
number of payments. This calculator runs that exact math instantly for weekly or monthly schedules.
How does line of credit interest work on a draw?
Interest accrues only on your outstanding balance, never on your full credit limit. Each payment covers that period’s interest first, and the remainder reduces principal. Because the balance falls with every payment, later payments carry less interest, which is why a shorter term cuts the total cost of the same draw.
What does a $25,000 draw at 18% cost over 26 weeks?
Using the calculator defaults: the weekly rate is 18% divided by 52, about 0.3462%. The amortization formula gives a weekly payment of $1,007.12. Twenty-six payments total $26,185, so the draw costs about $1,185 in interest. Stretch the same draw to 52 weeks and the total cost roughly doubles to about $2,361.
- Weekly periodic rate: i = 0.18 / 52 = 0.003462
- Number of payments: n = 26
- Payment = $25,000 × 0.003462 / (1 - (1.003462)^-26) = $1,007.12
- Total repaid = 26 × $1,007.12 = $26,185 (rounded to the nearest dollar)
- Total cost = $26,185 - $25,000 = $1,185
Can you draw again after paying a line of credit down?
Yes, that is the point of a revolving line. As principal is repaid, your available credit is restored and you can draw again without reapplying, usually up to your approved limit. Many weekly-repay lines treat each draw as its own mini-schedule, so two open draws mean two payment streams until one pays off.
Is a line of credit better than a term loan?
It depends on the job. A line of credit suits recurring, short-lived gaps because you borrow only what you use. A term loan fits one-time investments with a fixed payment you can budget around. Start with our business line of credit overview, or compare every funding type side by side.
When a Line of Credit Helps
A line shines when the need repeats: bridging receivables, smoothing seasonality, or grabbing supplier discounts. Here’s where to go deeper.
Business Line of Credit
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See the line of credit →Compare Business Funding
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Line of Credit Calculator FAQs
How is interest charged on a business line of credit?
You pay interest only on the amount you have drawn, not on your full approved limit. The lender converts your annual rate into a periodic rate (weekly or monthly), charges it on the outstanding balance each period, and applies the rest of your payment to principal. An undrawn line generally costs nothing beyond any maintenance or draw fees spelled out in your agreement.
Why do online lines of credit use 26-week and 52-week terms?
Many online lines of credit amortize each draw over a fixed schedule of weekly payments, commonly 26 or 52 weeks, instead of the open-ended monthly revolving structure banks use. A shorter schedule returns the money faster, so the same draw usually carries a lower total cost. Run both terms in the calculator above to see the difference on your own numbers.
Is this line of credit calculator's result an offer?
No. It is a free illustration that applies standard amortization math to the numbers you enter. Real pricing depends on how underwriters read your last 4 months of bank statements, your time in business, and your industry. Apply online in under 3 minutes, with no credit impact to check options, to see real terms within hours.
Can I draw again while I am still repaying a draw?
Usually, yes, as long as you have available credit and stay in good standing. Each new draw typically starts its own repayment schedule, so payments overlap until earlier draws are retired. Your agreement spells out how available credit is restored and whether each draw carries a fee, so read it before you borrow again.
How does a line of credit compare with an MCA or term loan?
A line of credit is reusable and charges interest only on what you draw. A term loan delivers one lump sum with fixed payments, and a merchant cash advance is priced with a factor rate instead of interest. The right fit depends on the job, so see our side-by-side breakdown of cost, speed, and repayment.
Related Tools & Guides
Offer Comparison Calculator
Put two funding offers side by side on true cost.
Open the tool →MCA Calculator
See total payback and annualized MCA cost.
Open the tool →Working Capital Calculator
Calculate net working capital and your current ratio.
Open the tool →Business Line of Credit
Draw what you need, pay on what you use.
Read the guide →MCA vs. Term Loan vs. Line of Credit
Match the funding type to your cash flow.
Read the guide →Compare Business Funding Options
Weigh MCA, term loans, LOC, and factoring.
Read the guide →Want These Numbers in Your Inbox?
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