Line of Credit Calculator
Estimate interest on the drawn amount and remaining availability.
What Does the Line of Credit Calculator Do?
The Line of Credit Calculator estimates the monthly interest cost on the amount drawn from a business line of credit and shows how much of the line remains available. It helps a business owner see the carrying cost of using a revolving line.
Line of Credit Calculator
Illustrative EstimateNo partner account is needed to use this calculator. Add a name only if a banker, CPA or advisor referred you.
Have CMCC Review sends your contact details, any referring partner and this scenario to CMCC so a person can follow up. Please do not enter Social Security numbers, bank logins or other sensitive information.
Illustrative Results
Illustrative estimate only. The Chris Mafera Capital Corp. is a commercial financing advisory and brokerage firm, not a direct lender. This is not a financing offer, approval, or commitment.
Inputs, Results and Assumptions
What You Enter
- Line limit: the total credit line.
- Amount drawn: how much is currently borrowed.
- Interest rate %: the annual rate to model on the drawn amount.
What the Results Show
- Monthly interest on drawn: drawn amount times annual rate divided by twelve.
- Availability: line limit minus amount drawn.
Assumptions and Limits
- Simple monthly interest on a constant drawn balance; changes in draws during the month are not modeled.
- Fees, minimum payments, annual renewal costs and principal repayment are not included.
- The drawn amount cannot exceed the line limit.
The numbers pre-filled in the fields are sample values so the tool shows a result on first load. They are not CMCC rates, quotes or offers.
Line of Credit Calculator FAQs
Do I pay interest on the whole line?
Typically interest accrues only on the amount drawn, though some lines carry other fees. Terms vary by funding source, so confirm the fee structure before relying on any estimate.
When might a line of credit fit better than a term loan?
A revolving line can suit uneven cash flow or recurring short-term needs, while a term loan can suit a one-time purchase. See working capital financing and the working capital guide.
How much cash cushion does my business have?
The Working Capital Runway calculator estimates how many months available cash covers monthly cash use.
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Want a person to look at this scenario?
Have CMCC Review carries your inputs and results into the application. CMCC is a commercial finance advisory and brokerage firm, not a direct lender; independent funding providers make their own credit decisions.