Business line of credit calculator
Enter how much you draw, the APR, any draw fee and how many months you will take to repay, and see the total cost in dollars and the monthly payment.
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Example numbers. Change them to match a quote you have.
The part of the line you take out, not the whole limit.
Charged each time you draw. Enter 0 if your line has none.
Total cost of this draw
$6,581
$5,581 interest plus a $1,000 draw fee
- Monthly payment
- $4,631.73
- Estimated APR with the fee
- 23.9%
For comparison: a bank loan of the same amount at 10.98% APR over 12 months costs about $3,023, for owners who qualify.
Find my fundingYour amount carries into the quiz, already filled in.
Assumes the draw is repaid in equal monthly payments and the fee is taken out of the draw. An estimate, not an offer.
The same $50,000 as a cash advance
A merchant cash advance is a purchase of future receivables, collected by a split of sales or a fixed debit, subject to reconciliation. It is not a loan. Here it is at an example factor rate of 1.35, paid back over the same 12 months.
| Same amount, same 12 months | Line of credit | Cash advance at 1.35 | Bank loan at 10.98% |
|---|---|---|---|
| Total cost in dollars | $6,581 | $17,500 | $3,023 |
| Payment | $4,632 a month | $268 each business day | $4,419 a month |
| Estimated APR | 23.9% | 63% | 10.98% |
Sorted by product, not by price. The cash advance cost is fixed by the factor rate: paying it back faster raises its estimated APR but not its dollar cost. Want to change the factor rate? Use the MCA calculator.
How the math works
- Monthly payment: the draw is repaid in equal monthly payments at your APR, using the standard loan payment formula.
- Interest = the payments added up, minus the draw.
- Draw fee = the draw x the fee percent. A $50,000 draw with a 2% fee costs $1,000 up front.
- Total cost = interest plus the draw fee.
- Estimated APR with the fee: the yearly rate at which your payments are worth exactly the cash you received after the fee.
The cash advance column uses the same amount at a 1.35 factor rate, inside the 1.1 to 1.5 range NerdWallet reports, with the payback split over business days (252 a year) across the same months. Its cost is the payback minus the amount.
Many lines let you repay faster and draw again. Paying early lowers the interest; the draw fee stays the same. To check a fixed loan instead, use the loan payment calculator, or read how business lines of credit work.
Common questions
Sources
- NerdWallet, Business loan interest rates (business line of credit 10% to 99% APR; bank small-business loan 6.37% to 10.98%, updated Sep 16, 2026), accessed Oct 20, 2026
- NerdWallet, Best Business Lines of Credit ("Most borrowers are subject to a 2% draw fee" on one listed online line), accessed Oct 20, 2026
- NerdWallet, Is a Merchant Cash Advance Right for Your Business? (factor rates typically 1.1 to 1.5), accessed Oct 20, 2026