Interest on a revolving credit line. The Line of Credit Calculator takes amount drawn, annual interest rate, days outstanding, annual fee on the facility and returns interest for the period plus interest per day, interest per 30 days, interest plus fee if drawn all year. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the Line of Credit Calculator works
A revolving line charges interest only on what is drawn and only for the days it is drawn, which makes it cheaper than a term loan for short gaps and expensive if the balance is never repaid.
Worked example
With the example values (amount drawn of $50,000, annual interest rate of 12%, days outstanding of 45 days, annual fee on the facility of $500), the interest for the period is $739.73; interest per day $16.44, interest per 30 days $493.15, interest plus fee if drawn all year $6,500.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is interest for the period calculated?
interest = amount drawn × annual rate × days ÷ 365.
Which figures do I need?
Amount drawn, annual interest rate, days outstanding, annual fee on the facility. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
