Calculate monthly payments and total interest for any line of credit or HELOC. Compare interest-only vs. fully amortizing payment options.
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A line of credit (LOC) is a revolving credit facility that lets you borrow up to a set limit, repay, and borrow again. Unlike a lump-sum loan, interest accrues only on the outstanding balance. Common types include personal lines of credit (PLOC) and home equity lines of credit (HELOC).
Most lenders require a minimum payment of 1–2% of the outstanding balance or $25, whichever is greater. Making only minimum payments on a line of credit is costly — the majority of each payment goes toward interest, not principal.
LOC interest is calculated daily on the outstanding balance. The daily rate is your APR divided by 365. Monthly interest = daily rate × balance × days in period. Our calculator uses monthly compounding for simplicity.
Personal lines of credit typically range from 8–24% APR depending on credit score, lender, and market conditions. HELOCs are usually lower (6–10%) because they are secured by home equity. Rates are often variable (prime + margin).
A HELOC (Home Equity Line of Credit) is secured by your home equity, resulting in lower interest rates and higher credit limits. A personal LOC is unsecured, carries higher rates, and does not put your home at risk.
Yes. A LOC appears on your credit report as a revolving account. High utilization (over 30% of the limit) can lower your score. Responsible use — low balances, on-time payments — can improve your credit over time.
Use a LOC if you need flexible, revolving access to funds over time. Use a personal loan if you need a fixed lump sum with predictable monthly payments and a defined payoff date. LOCs typically have variable rates; personal loans are usually fixed.