What does a drawn credit line cost over the chosen number of days?
Interest cost
$226.85
Tip. This covers interest on the draw only. Add any unused-line or annual fees separately.
Explore the numbers
Start with a scenario, then read the response curve to see which input actually moves the answer.
Example 1
A short cash-flow bridge where the interest is genuinely small.
Interest cost
$52.93
Example 2
A draw held until an expected payment arrives.
Interest cost
$226.85
Example 3
The same balance still outstanding half a year later.
Interest cost
$680.55
Sweeps days drawn from half to one and a half times your value, holding everything else fixed.
Response curve
Interest cost
$226.85
Estimates simple interest on a drawn line of credit over a chosen number of days, which is the right shape for short bridge borrowing.
Interest = drawn × APR × days ÷ 365
Close enough for planning. Real statements often use a daily periodic rate on the average daily balance, and some use a 360-day year, which changes the total slightly.
Interest accrues on what is outstanding each day, so a partial repayment reduces it immediately. Model each tranche separately, or enter the average balance and the full period.
Lines are often secured or underwritten against a business, and they charge interest from the draw date rather than carrying a card's penalty pricing. The trade is that a secured line puts an asset at risk.
No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.
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