Line of Credit Calculator

Use our free line of credit calculator to estimate monthly payments on a drawn line of credit. Supports interest-only periods and standard amortization for business and personal lines of credit.

Financial

Currency

Draw Amount

Annual Interest Rate (%)

Repayment Term (years)

years

Interest-Only Period (months, 0 = none)

months

Formula

A line of credit allows you to draw funds up to a limit and pay interest only on the amount drawn. This calculator estimates payments based on your draw amount, rate, and term.

M = P[r(1+r)^n] / [(1+r)^n - 1]

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the amount you have drawn from your line of credit.
2Enter the interest rate and repayment term.
3Optionally set an interest-only period before amortization begins.

Examples

$50,000 draw, 9%, 5 year term

1.Monthly rate = 9%/12 = 0.75%
2.n = 5 x 12 = 60
3.Monthly payment = $1,037.92

Result: $1,037.92

Frequently Asked Questions

A flexible loan from a bank or financial institution where you can draw funds up to a set limit and pay interest only on the amount used.

A loan provides a lump sum upfront with fixed payments. A line of credit allows you to draw as needed and only pay interest on what you use.

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Line of Credit Guide

CalculateMe Team

Last updated: 2026-07-15

Line of Credit Calculator

Formula

How It Works

Examples

$50,000 draw, 9%, 5 year term

Frequently Asked Questions

What is a line of credit?

What is the difference between a line of credit and a loan?

Related Calculators

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Line of Credit Calculator

Formula

How It Works

Examples

$50,000 draw, 9%, 5 year term

Frequently Asked Questions

What is a line of credit?

What is the difference between a line of credit and a loan?

Related Calculators

Related Articles