Calculate estimated monthly payments for a personal line of credit. Enter your desired credit limit, the annual interest rate, and the term (in months) you plan to repay.
Your Estimated Monthly Payment
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Understanding Your Personal Line of Credit Calculation
A Personal Line of Credit (PLOC) is a flexible borrowing option that provides you with a set amount of money you can draw from as needed, up to a certain limit. Unlike a traditional loan, you only pay interest on the amount you've actually borrowed, not the total credit limit. This calculator helps you estimate the monthly payment and total interest paid based on your credit limit, the annual interest rate, and the repayment period (term).
How the Calculation Works:
This calculator uses a standard loan amortization formula, adapted for a line of credit scenario. We assume you are repaying a specific amount drawn from your line of credit over a set term at a fixed interest rate.
Maximum Credit Limit: This is the total amount you can borrow from your line of credit.
Annual Interest Rate: The yearly rate charged on the borrowed amount.
Repayment Term (Months): The total number of months over which you plan to pay back the borrowed amount.
The formula to calculate the Monthly Payment (M) is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal Loan Amount (we use the Maximum Credit Limit as the principal for this calculation, assuming you've drawn the full amount).
n = Total number of payments (Repayment Term in Months).
The Total Interest Paid is calculated as:
Total Interest = (Monthly Payment * Repayment Term) - Maximum Credit Limit
Important Considerations:
This calculator assumes you draw the full Maximum Credit Limit at the start and repay it over the specified term. In reality, you might draw amounts incrementally.
Interest rates on lines of credit can be variable. This calculation uses a fixed rate for estimation.
The actual monthly payment might slightly differ due to the lender's specific calculation methods or fees.
Always review your line of credit agreement carefully for exact terms, fees, and repayment schedules.
function calculateLineOfCredit() {
var creditLimit = parseFloat(document.getElementById("creditLimit").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var repaymentTerm = parseInt(document.getElementById("repaymentTerm").value);
var monthlyPaymentResultElement = document.getElementById("monthlyPaymentResult");
var totalInterestResultElement = document.getElementById("totalInterestResult");
monthlyPaymentResultElement.textContent = "–";
totalInterestResultElement.textContent = "–";
if (isNaN(creditLimit) || isNaN(annualInterestRate) || isNaN(repaymentTerm) ||
creditLimit <= 0 || annualInterestRate < 0 || repaymentTerm <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var monthlyInterestRate = (annualInterestRate / 100) / 12;
var numberOfPayments = repaymentTerm;
var monthlyPayment;
if (monthlyInterestRate === 0) {
monthlyPayment = creditLimit / numberOfPayments;
} else {
monthlyPayment = creditLimit * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
var totalAmountPaid = monthlyPayment * numberOfPayments;
var totalInterest = totalAmountPaid – creditLimit;
monthlyPaymentResultElement.textContent = "$" + monthlyPayment.toFixed(2);
totalInterestResultElement.textContent = "Total Interest Paid: $" + totalInterest.toFixed(2);
}