Calculator
Line of credit calculator
See how long it takes to pay off a line of credit, how much interest you’ll pay, and what happens if rates go up.
Paid off in
3 yrs 2 mo
- Total interest
- $1,288
- Total you repay
- $11,288
- Interest this month
- $64.17
- Rate used
- 7.7%
Of your first $300 payment, $64.17 goes to interest and $235.83 pays down the balance.
How this calculator works
Interest is charged on the balance you’ve used, at your annual rate divided evenly across the year, then your payment is subtracted. The calculator repeats that each month until the balance is gone.
Lines of credit are usually variable, priced at prime (4.7% today) plus a margin set when you’re approved. Real lenders charge daily interest on calendar days, so actual figures differ slightly.
Questions people ask
How is interest on a line of credit calculated?
Interest is charged daily on the amount you’ve used, at an annual rate that’s usually prime plus a margin, and added monthly. You only pay interest on what you’ve drawn, not your whole limit.
What happens if I only pay the interest?
The balance never goes down. On $10,000 at 7.7%, interest-only payments are about $64 a month, forever, until you start paying down the principal.
How do rate changes affect my line of credit?
Most lines of credit are variable: when prime changes, your rate changes too. Prime is 4.7% today. Use the rate-rise option to see how a higher rate stretches your payoff.
Is a line of credit cheaper than a credit card?
Often, because lines of credit are priced from prime while most credit cards charge around 20% or more. But without a fixed payoff date, it’s easy to carry a balance for years, so set a fixed payment that clears it.
Estimates only, not a quote or approval. Your lender’s contract, fees and approval decide the real cost. WalletReturn is independent. FCAC: Personal loans ↗FCAC: Lines of credit ↗FCAC: Your rights with personal loans ↗