Business line of credit cost calculator
Estimate what a single draw on a business line of credit costs, including draw fees and the weekly or monthly payment.
Weekly amortization at the stated rate. Fee-based lines (flat weekly fees) should be converted to an annual rate first.
The cost of a line of credit draw depends on the amount drawn, the repayment term and the rate or fee. A $25,000 draw repaid over 26 weeks at 20% simple interest costs about $1,230 in interest, or roughly $1,000 a week. Draw fees of 1% to 2% add to that. Enter your draw to estimate the payment and total cost.
How to use this calculator
Draw amount
You pay interest only on what you draw, not on the full credit line.
Repayment term
Each draw has its own schedule, commonly 12, 26 or 52 weeks.
Rate
Enter the simple interest rate or APR quoted. For fee-based lines such as Fundbox, convert the plan fee to an annual rate first.
Draw fee
Some lenders charge 1% to 2% of each draw.
Frequently asked questions
How is interest charged on a business line of credit?
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