Business Loans
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*With a business line of credit, you only pay interest on the funds you actually draw — not the entire credit limit. Rates, terms, and qualification criteria vary by lender. This calculator provides estimates only and is not a guarantee of funding.
To make the best use of this business line of credit calculator, you'll need a few pieces of information:
The calculator shows both your interest-only payment (minimum to carry the balance) and the full principal + interest payment to pay off the draw within the term.
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:
This is the month and year your business officially started operations.
This refers to the total amount of money your business makes during a 12-month period.
Last month's deposits show how much money you deposited into your business bank account in the previous month.
This is where you select your business' estimated credit score.
Here are the essential pieces of information you'll need to enter and notice as outputs on our business line of credit calculator.
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 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.
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.
This is what you'll pay on a daily basis to repay your business line of credit.
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.
Business line of credit costs and monthly loan payments are usually affected by the following:
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.
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.
Fortunately, there are ways you can save money on a business line of credit, including:
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.
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.
Not all business lines of credit are created equal. Use Loanable to do your research, compare options, and choose the most affordable loan for your unique situation.
