{
  "id": "line-of-credit",
  "version": "65f66f9a35ee",
  "status": "published",
  "name": "Line of Credit Calculator",
  "question": "What will my line of credit cost?",
  "summary": "Works out the monthly payment on a line of credit balance: interest-only in the draw period, then level payments over the repayment term, or how long a fixed payment takes to clear it, with the total interest.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/line-of-credit-calculator",
  "markdown": "https://www.acalculator.org/finance/line-of-credit-calculator.md",
  "kind": "schedule",
  "method": "r = APR ÷ 12; draw months pay B × r; then the level payment B × r ÷ (1 − (1 + r)^−term) (B ÷ term at 0%); a fixed payment P clears the balance in −ln(1 − rB/P) ÷ ln(1 + r) months.",
  "assumptions": [
    "Interest each month is the APR ÷ 12 on the balance. Lenders that charge a daily rate on the daily balance give slightly different amounts.",
    "You draw nothing more after today, and the rate stays the same. Many lines of credit have variable rates.",
    "Payments are made at the end of each month; the last payment clears what is left. Fees are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "amount": {
        "title": "Amount drawn",
        "description": "The balance you owe on the line of credit.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0.01,
        "maximum": 100000000
      },
      "apr": {
        "title": "Interest rate (APR)",
        "description": "The yearly rate on the line. Interest each month is the APR ÷ 12 on the balance.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 100
      },
      "plan": {
        "title": "Repay by",
        "description": "Level payments over a repayment term after a draw period, or a fixed payment you choose.",
        "type": "string",
        "enum": [
          "term",
          "payment"
        ]
      },
      "draw": {
        "title": "Interest-only months",
        "description": "Months of the draw period left, when you pay only the interest. 0 to start repaying now.",
        "type": "integer",
        "minimum": 0,
        "maximum": 360
      },
      "term": {
        "title": "Repayment months",
        "description": "The months of the repayment period, when the balance is paid off in level payments.",
        "type": "integer",
        "minimum": 1,
        "maximum": 480
      },
      "pay": {
        "title": "Monthly payment",
        "description": "The amount you pay each month until the balance is gone. It must be more than the first month’s interest.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0.01,
        "maximum": 100000000
      }
    }
  },
  "outputs": {
    "monthly": {
      "label": "Monthly payment",
      "description": "The level payment in the repayment period, or the fixed payment you chose.",
      "format": "money"
    },
    "interestOnly": {
      "label": "Interest-only payment",
      "description": "The payment in the draw period: amount × APR ÷ 12.",
      "format": "money"
    },
    "months": {
      "label": "Months to pay off",
      "description": "The number of payments until the balance is 0, draw period included.",
      "format": "integer"
    },
    "interest": {
      "label": "Total interest",
      "description": "All the interest paid until the balance is 0.",
      "format": "money"
    },
    "total": {
      "label": "Total paid",
      "description": "The amount drawn plus the total interest.",
      "format": "money"
    },
    "amount": {
      "label": "Amount drawn",
      "description": "The balance at the start.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "amount": 20000,
      "apr": 9,
      "plan": "term",
      "draw": 12,
      "term": 60,
      "pay": 500
    },
    "outputs": {
      "monthly": 415.1671045270802,
      "interestOnly": 150,
      "months": 72,
      "interest": 6710.026271624812,
      "total": 26710.02627162481,
      "amount": 20000
    },
    "text": "Your line of credit payment is $415.17 a month, with $6,710.03 of interest in all."
  },
  "examples": [
    {
      "given": {
        "amount": 12000,
        "apr": 0,
        "plan": "term",
        "draw": 0,
        "term": 12
      },
      "expect": {
        "monthly": 1000,
        "interest": 0,
        "months": 12
      },
      "source": "hand calculation in content.mdx: 12,000 ÷ 12 at 0%; Consumer Financial Protection Bureau, What is a home equity line of credit (HELOC)? (you can borrow up to the limit during the draw period; then the repayment period starts, the lender sets a schedule to repay the full balance, and payments often go up), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/ (retrieved 2026-10-02)"
    },
    {
      "given": {
        "amount": 20000,
        "apr": 9,
        "plan": "term",
        "draw": 12,
        "term": 60
      },
      "expect": {
        "interestOnly": 150,
        "monthly": 415.1671045270774,
        "months": 72,
        "interest": 6710.0262716248535
      },
      "source": "hand calculation in content.mdx: 20,000 × 0.0075 = 150 a month; level payment 20,000 × 0.0075 ÷ (1 − 1.0075^−60); Consumer Financial Protection Bureau, What is a home equity line of credit (HELOC)? (you can borrow up to the limit during the draw period; then the repayment period starts, the lender sets a schedule to repay the full balance, and payments often go up), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/ (retrieved 2026-10-02); Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.7 Periodic statement (the statement discloses each periodic rate that may be used to compute the finance charge), https://www.consumerfinance.gov/rules-policy/regulations/1026/7/ (retrieved 2026-10-02)",
      "tolerance": 1e-9
    },
    {
      "given": {
        "amount": 10000,
        "apr": 12,
        "plan": "payment",
        "pay": 500
      },
      "expect": {
        "months": 23,
        "interest": 1213.4792660627936
      },
      "source": "hand calculation in content.mdx: n = −ln(1 − 0.01 × 10,000 ÷ 500) ÷ ln 1.01 = 22.4, so 23 payments; Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.7 Periodic statement (the statement discloses each periodic rate that may be used to compute the finance charge), https://www.consumerfinance.gov/rules-policy/regulations/1026/7/ (retrieved 2026-10-02)",
      "tolerance": 1e-9
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, What is a home equity line of credit (HELOC)? (the draw period, the repayment period, and payments that often go up when repayment starts). https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/ (retrieved 2026-10-02)",
    "Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.7 Periodic statement (each periodic rate used to compute the finance charge on open-end credit). https://www.consumerfinance.gov/rules-policy/regulations/1026/7/ (retrieved 2026-10-02)"
  ],
  "related": [
    "heloc",
    "loan",
    "credit-card-payoff",
    "interest-only-loan"
  ],
  "changelog": []
}