FinancialTools.ai · Free business tools
Business Loan Calculator
Estimate your monthly payment, total interest, and repayment cost. See how your loan amount, interest rate, and term affect the numbers.
Estimated monthly payment
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Fixed rate · Monthly payments
Inputs changed. Select Calculate Payment to update these results.
View repayment schedule
Monthly breakdown of principal, interest, and remaining balance.
| Month | Payment | Principal | Interest | Balance |
|---|
Monthly payment
Your estimated principal and interest payment each month.
Total interest
The estimated borrowing cost over the full loan term, excluding fees.
Total repayment
Your loan amount plus estimated interest over the full term.
Estimates are for educational purposes and are not loan offers. This calculator assumes a fixed annual interest rate, equal monthly payment periods, and the first payment one month after funding. It excludes fees, variable rates, balloon structures, and extra payments. Amounts are rounded for display; totals use unrounded calculations. Actual lender calculations and terms may differ. Your entries stay in this calculator and are not sent to our financing partner.
How to Use the Business Line of Credit Calculator
- Enter your credit limit. This is the total credit available in the scenario you want to explore.
- Enter your initial draw amount. Add the amount you plan to borrow, up to your credit limit.
- Add an annual interest rate. Use a quoted rate or test different rates for planning purposes.
- Choose your planning period. Enter the number of months you want to model.
- Select a repayment scenario. Compare interest-only payments with paying off the draw through equal monthly payments.
Review the results, then adjust your inputs to explore another scenario.
Explore Business Financing Options
Now that you have an estimate, take the next step toward understanding your financing options. Compare any available offer with your expected cash flow, repayment plan, and total borrowing cost.
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Understand Your Estimated Payments
Interest-Only Scenario
This scenario estimates monthly interest payments while keeping the amount borrowed unchanged. The calculator assumes you repay the entire borrowed amount, plus the final month’s interest, at the end of your selected planning period.
The monthly interest amount is not your final payment. You still need to repay the principal.
Monthly Payoff Scenario
This scenario spreads repayment of the initial draw across your selected number of months. Each payment includes principal and interest, gradually reducing the outstanding balance.
It is a planning estimate, not a calculation of your lender’s required minimum payment.
Business Line of Credit Payment Example
Suppose you enter a $100,000 credit limit, draw $50,000, and use a 12% annual interest rate over 12 months.
| Estimated result | Interest-only scenario | Monthly payoff scenario |
| Regular monthly payment | $500.00 in interest | $4,442.44 in principal and interest |
| Final month’s payment | $50,500.00 | Approximately $4,442.44 |
| Total interest | $6,000.00 | $3,309.27 |
| Total paid, including principal | $56,000.00 | $53,309.27 |
See How Borrowing Decisions Affect Your Budget
Before choosing a financing option, explore multiple scenarios. This calculator helps you:
- Compare the costs of drawing different amounts.
- Estimate the effect of a higher or lower interest rate.
- See how a shorter payoff period changes monthly payments.
- Plan for the principal repayment in an interest-only scenario.
- Review estimated total interest alongside the monthly payment.
What the Calculator Includes—and Its Limits
The calculator models one initial draw from an otherwise unused credit line. It assumes a constant annual interest rate, equal monthly periods, and no additional borrowing.
It does not include annual fees, draw fees, origination fees, or other lender charges. It also does not model changing rates, daily balance calculations, or lender-specific minimum payments.
The unused credit figure is your entered credit limit minus the initial draw. It is not confirmation that a lender will make that amount available.
Frequently asked questions
A business line of credit provides access to funds up to an approved limit. You can draw funds as needed, subject to your agreement. With a revolving line, repaying principal generally makes that credit available to borrow again, provided the account remains eligible for additional draws. Learn more about how business credit lines work.
Your credit limit is the maximum amount available under the credit agreement. Your draw amount is the portion you borrow.
For example, drawing $20,000 from a $75,000 line leaves $55,000 unused before considering any lender restrictions or other outstanding balances.
For the interest-only scenario, it multiplies the amount drawn by the annual interest rate and divides by 12.
For example, a $20,000 draw at a 12% annual rate produces an estimated monthly interest payment of $200. Actual lender calculations may differ.
No. Paying only interest leaves the principal unchanged. In this calculator’s interest-only scenario, the full principal is repaid in the final month, along with that month’s interest.
No. It shows two illustrative repayment scenarios. Your lender’s required payment may use a different formula or payment schedule. Check your agreement for the actual requirements.
This version models one initial draw with no additional borrowing. You can change the draw amount to compare separate scenarios, but it does not simulate a series of withdrawals and repayments.
No. The estimates exclude lender fees. Review any offer for charges that could increase your total cost, including account maintenance, annual, origination, or draw fees.
Yes. Change the annual interest rate and calculate again to compare results. Each calculation assumes that rate stays constant throughout the planning period.
The calculator is free to use and does not perform a credit check. Exploring numbers here is separate from applying for financing.
No. The calculator does not assess eligibility, approve applications, or offer loans. The financing provider determines any approved amount, interest rate, and repayment terms.