Line of Credit Calculator
A line of credit lets you borrow up to a limit and pay interest only on the amount you use during the draw period. Enter your credit limit, current drawn balance, and APR to see your interest-only payment per period and estimated interest over the next 12 months. Optionally turn on the repayment phase to see what your payment would be if you amortized the balance over a set term.
Inputs
Results
Balance vs interest (next 12 months)
- Balance (drawn)CA$25,000 (93%)
- Interest (next 12 months)CA$2,000 (7%)
For illustration only. During the draw period you pay interest on the outstanding balance; principal is not required until the repayment phase. Rates may be variable. This is not financial advice.
About this calculator
This calculator is for anyone with a line of credit (personal or home equity) who wants to see their interest-only payment during the draw period and, optionally, what repayment would look like if they started paying down principal over a fixed term. You enter your credit limit, current drawn balance, and APR; results show the payment per period and estimated interest over the next 12 months.
Use it to budget for interest costs while you are only making minimum (interest-only) payments, or to compare keeping the balance versus repaying over a set number of years. Many LOCs are variable-rate; the calculator uses the APR you enter as a fixed rate for the projection. Actual interest will vary if your rate changes.
How LOC interest works
A line of credit lets you borrow up to a limit. During the draw period, you typically pay only interest on the amount you’ve used: Interest payment = (Balance × APR) ÷ number of payment periods per year. So for a $25,000 balance at 8% APR with monthly payments, you’d pay 25,000 × 0.08 ÷ 12 = about $167 per month in interest. When the repayment phase begins (or if you choose to amortize), payments include principal and interest like a standard loan.
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