By Lauren Ward | Updated March 13, 2026
Use SoFi’s business credit line calculator to see how this type of financing might fit into your company’s plans. You can enter a few details to get estimates of your monthly payment and total interest paid.
Find out your potential financing costs by following these steps with our business line of credit payment calculator.
Whether you already have an approved maximum amount you can borrow or simply want to calculate line of credit possibilities, this tool allows you to experiment with sums between $10,000 and $250,000.
Estimate how much of your credit limit you plan to use throughout the life of the LOC. Choose any amount between $1,000 and $250,000.
Next, enter your estimated annual percentage rate (APR). If you’ve already received a lender quote, enter that number here. Otherwise, you can use our default APR as a starting point. It may be helpful to test out higher and lower numbers to see the business line of credit payment calculator’s changing results.
The draw period refers to how long you can draw funds from your business line of credit. During this period, you’ll usually make interest-only payments. Choose from a 6-, 12-, 18-, or 24-month draw period on the line of credit calculator.
After the loan’s draw period, you enter a repayment period where you’ll pay off the balance, including principal and interest. Choose a term between one and five years to help estimate the total cost of your business line of credit.
Many lenders charge a one-time origination fee, which is a percentage of your maximum credit limit. You can see the effects of various fees by plugging the percentages into this line of credit calculator for business. If you know the origination fee for a planned line of credit, enter it here, or use our default fee as a starting point.
After inputting all of your financing details into our line of credit calculator for businesses, you’ll see a breakdown of costs and the total repayment number, sorted out as follows:
• Origination fee: The total one-time cost you’ll pay to open your business line of credit.
• Interest-only payment: The monthly cost you’ll pay during your draw period, based on your estimated amount drawn.
• Principal and interest payment: How much you’ll pay each month during the repayment period.
• Total interest paid: The total cost of interest from both the draw and repayment periods.
• Total repayment: How much you’ll pay in total over the life of the business line of credit.
With this information, you can experiment using different loan terms to understand how each one affects your line of credit calculator results.
Most business lines of credit only require you to make payments on the interest while you’re in the draw period. Your initial payment is calculated based on your interest rate and your outstanding balance.
This structure can help keep costs low during the earlier part of your line of credit. Plus, you only pay interest on the funds you’ve withdrawn, not the entire credit limit.
If you choose to repay some or all of your outstanding principal, the interest payments are either reduced or eliminated. That saves you money over time and can replenish your available credit, if allowed by your lender.
Recommended: Equipment Financing
Qualifying for a business line of credit could open the door to several advantages.
• Flexible access to financing: Enjoy credit access available when you need it, instead of having to react and look for financing when opportunities or financial setbacks occur.
• Interest charged only on outstanding balance: Unlike getting a small business loan, you only draw the funds that you need, limiting the amount of interest charged.
• Credit building opportunity: Responsibly managing your line of credit can help build your business’s credit history.
There are a number of reasons why a business may decide to use a business line of credit. Common scenarios include:
• Smoothing out cash flow: Whether you’re a seasonal business or manage lots of outstanding invoices, a credit line helps you even out your cash flow so you’re not waiting on payments to cover your operating expenses.
• Covering financial emergencies: When a major expense pops up, a line of credit gives you access to cash without the delay of getting additional financing approvals.
• Scaling with opportunities: With a line of credit, you can quickly capitalize on new expansion opportunities, whether it’s launching a new campaign or acquiring a competitor. You don’t have to deplete your cash resources.
Here’s how a credit line stacks up against other types of financing.
| Feature | Business Line of Credit | Business Loan |
| Funding structure | Ongoing access up to a credit limit | One-time sum |
| Interest charged | Only on outstanding balance | On full loan amount |
| Repayment term | Usually up to five years | Up to 10 years with a long-term business loan |
| Additional funding availability | Continue to draw up to your credit limit | Must submit new loan application |
Use a business credit line calculator and a business loan calculator to compare payments and total costs.
Recommended: Startup Business Loans
| Feature | Business Line of Credit | Business Credit Card |
| Payment options | Request transfer from credit line to your business checking account, then pay with check, cash, debit card, etc. | Pay wherever credit cards are accepted or get a cash advance |
| Funding availability | Ends after draw period | Accessible until you close the account |
| Credit limits | Often higher than a credit card | Often lower than a line of credit |
| Rewards program | Usually not available | Usually available |
Credit cards and business lines of credit can be unsecured or secured depending on your eligibility.
| Feature | Business Line of Credit | Merchant Cash Advance |
| Lender fees | Charged as annual percentage rate (APR) | Charged as a factor rate |
| Repayment process | Usually monthly payments | Usually daily or weekly withdrawals |
| Collateral requirements | LOC could be secured or unsecured | Typically unsecured |
Qualifying for a merchant cash advance is based on business performance and future sales projections. You may want to calculate line of credit costs versus the merchant cash advance factor rates to determine the better deal.
Recommended: Getting a Commercial Equity Line of Credit (CELOC)
Here are some of the basic qualifications most lenders look at when evaluating applications for a business line of credit:
• Business credit score: Varies
• Personal credit score: 600 or higher
• Revenue: $50,000 or more
• Time in business: 6 months or more
These eligibility requirements vary based on lender, and you may find some that are less or more stringent in their preferred qualifications.
Ready to have flexible financing in place that can help your business handle emergencies or take advantage of new opportunities? Explore your business line of credit options in SoFi’s small business financing marketplace.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
The interest charged on a business line of credit varies by lender and your business’s qualifications. By getting quotes through an online marketplace, you can see a range of interest rates that may be available.
Yes, most lenders let you pay off your credit line early. But check the loan agreement to see if there are any prepayment penalties.
A business line of credit is unlike a loan in that revolving credit gives you continuous access to funds throughout the draw period, rather than a loan’s one-time lump sum.
It depends on your lender. Fees commonly associated with a business line of credit include an origination fee, draw fee, maintenance fee, inactivity fee, and late payment fee.
Lenders look at your business financials to determine your maximum credit limit. These metrics generally include revenue, expenses, time in business, and credit history, among others.
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