Business Line of Credit Loan Calculator

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How to Use The Line of Credit Calculator

Estimate Monthly Payment
Estimate How Much You May Qualify For
Terms and Explanation
How to Calculate Payments
How to Reduce the Cost of a Business Line of Credit

Estimate Monthly Payment

To make the best use of this business line of calculator, you’ll need a few additional pieces of information. The calculator requires the following:

From this calculator, you will get your estimated daily payment and total payment.

Estimate How Much You May Qualify For

You can also estimate how much you may qualify for if you take out a business line of credit. Once you fill out your information, the calculator will give you a range of dollar figures within which you may be able to borrow. This will give you an idea of the types of expenses you may cover and whether or not you might need to seek additional financing elsewhere. The inputs for this calculator include:

Business Start Date

This is the month and year your business officially started operations.

Annual Revenue

This refers to the total amount of money your business makes during a 12-month period.

Last Month’s Deposits

Last month’s deposits show how much money you deposited into your business bank account in the previous month.

Estimated Credit Score

This is where you select your business’ estimated credit score.

Terms and Explanation

Here are the essential pieces of information you’ll need to enter and notice as outputs on our business line of credit calculator.

Amount Seeking

This refers to the borrowing limit or the maximum amount of money a lender will let you spend. Remember, you can withdraw funds as you need to, so you don’t have to borrow the entire amount you’re approved for.

Loan Term

Loan term is the amount of time you’ll take to pay back the money you withdraw. A longer term will lower your monthly payments, but be more expensive in the long run.

Interest Rate

The amount you’ll pay to be able to pull funds from a business line of credit is your interest rate. The better your credit score, the lower your interest rate will be.

Estimated Daily Repayment

This is what you’ll pay on a daily basis to repay your business line of credit.

Total Repayment

Total repayment is your overall cost of borrowing. It includes principal and interest and can give you an idea of the total cost of your line of credit.

How to Calculate Payments for a Business Line of Credit

Business line of credit costs and monthly loan payments are usually affected by the following:

1. Loan Amount & Terms

Loan amounts or borrowing limits for business lines of credit can range from $10,000 to $100,000. Terms are often between six months and five years. The higher your borrowing limit, the more your monthly payments will be. Also, while a longer term may lower your payments, it will cost you more in interest fees over time.

2. Interest Rates

Interest rates for business lines of credit vary with each lender. But they are typically based on the amount you withdraw, the loan term, and your credit score. While rates often range between 5% and 20%, they can be higher. Keep in mind that interest rates are different from annual percentage rates (APRs), which include additional costs, like fees.

How to Reduce the Cost of a Business Line of Credit

Fortunately, there are ways you can save money on a business line of credit, including:

Don’t Overspend

Just because you get approved for a borrowing limit of $50,000 doesn’t mean you have to borrow $50,000. Only borrow what you need, as overspending can quickly increase the cost of your loan.

Be Mindful of Fees

Some lenders will charge several fees on business lines of credit. These include origination fees, account maintenance fees, draw fees, and inactivity fees. Make sure you find a lender with the least amount of fees.

Shop Around

Not all business lines of credit are created equal. Use Lendio to do your research, compare options, and choose the most affordable loan for your unique situation.


Since you only pay interest on the amount you borrow, rather than the full amount you’re approved for, it’s acceptable to ask for a higher borrowing limit than you may need. If you do so, however, be careful and do your best to avoid overspending. Also, realize that a lower borrowing amount will be easier to secure if you don’t have the best credit.


Interest rates on business lines of credit are based on factors like the lender, borrowing limit, and your credit score. But on average, you can expect to pay anywhere from 5% to 20%. The lowest rates are reserved for those with good credit, so you may have to settle for a higher rate if you have fair credit or bad credit.


Most online lenders offer fast approvals and funding on business lines of credit. Depending on the lender and when you apply, you can get approved and funded that same day, within 24 hours, or in a few business days.

To get approved for a business line of credit, you’ll likely need a minimum credit score of 600. But if you’re a newer business, you can still get approved, but will likely have to accept a lower borrowing limit and higher interest rate.

Quickly compare financing options from multiple funders.

Applying is free and won’t impact your credit

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