Fieldhaven Business Funding, a small-business funding service in Valparaiso, Indiana, provides this line of credit payment calculator. Enter a drawn balance, an annual rate and a payoff period to work out the monthly payment, total interest and total paid. The page also shows interest-only payments and worked cases; rates and terms on any real offer come from funding partners.
What the Line of Credit Payment Calculator Does
The calculator treats a drawn balance like a small loan: it spreads the balance and its interest into equal monthly payments over the months you enter. That shows what it costs to clear a draw on a schedule. It uses only the numbers you type, and nothing you enter is sent anywhere.
Line of Credit Payment Calculator With Interest-Only Payments
Some lines allow interest-only payments during the draw period. The arithmetic is simpler: balance times annual rate divided by twelve. Illustration only, invented figures: a $30,000 balance at an invented 11.0% costs about $275.00 a month interest-only (our arithmetic), and the balance stays at $30,000 until principal is paid.
Interest-only payments keep the monthly cost low but do not reduce what is owed. Use the calculator with a payoff period to see what clearing the balance costs instead.
Interest-Only Line of Credit Calculator Compared With a Payoff Schedule
Illustration only, invented figures: the same $30,000 balance at an invented 11.0% paid off over different periods (our arithmetic):
| Payoff period | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 6 months | $5,161.64 | $969.82 | $30,969.82 |
| 12 months | $2,651.45 | $1,817.40 | $31,817.40 |
| 18 months | $1,815.56 | $2,680.01 | $32,680.01 |
| 24 months | $1,398.24 | $3,557.64 | $33,557.64 |
Shorter periods mean higher payments and less interest. The right period is the one the business's cash flow in a slow month can carry.
Line of Credit Interest Calculator, Daily
Lines usually accrue interest daily on the balance outstanding. Daily interest equals the balance times the annual rate divided by 365, times the number of days. Illustration only, invented figures: $30,000 at an invented 11.0% for 20 days costs about $180.82 (our arithmetic). Some agreements divide by 360, which raises the daily figure slightly.
The line of credit page works through a full month of draws and payments.
Worked Cases for a Landscaper, a Shop and a Clinic
Illustration only, invented figures, all at 11.0% over 12 months: a landscaping crew clearing an invented $18,000 draw pays about $1,590.87 a month; a shop clearing $42,000 for a stock buy pays about $3,712.03; a clinic clearing $65,000 drawn while claims were slow pays about $5,744.81 (our arithmetic). Enter your own numbers above to see your figures.
Draws Spread Across a Year Instead of One Balance
A line is rarely drawn once and paid off on a schedule. More often the balance rises and falls: a draw for payroll, a payment when a customer pays, another draw for stock. To estimate a year, run the calculator on the average balance you expect to carry rather than the peak, then check the peak months separately so the payment in those months still fits. Illustration only, invented figures: a business expecting an invented average balance of $20,000 at an invented 11% would carry about $2,200 of interest over a year (our arithmetic), before any fees.
Reading the Result Next to Fees and Other Offers
- Add any annual fee, spread over the months it covers.
- Add draw fees for each draw taken.
- Check whether the rate is variable; if it is, the payment can change.
- Set the total paid against a term loan or working capital for the same need.
The term loan page and the working capital page cover the alternatives.
By Fieldhaven Business Funding · Updated