Calculator methodology
Term Loan vs Line of Credit Calculator: Methodology
The calculator compares an amortising term loan with a revolving line whose cost is estimated from the limit, average utilisation, drawn rate and annual line fee.
Calculation approach
- The line-of-credit estimate assumes average utilisation is representative over the chosen horizon.
- It does not model daily balance volatility, covenants or review risk.
- A high sustained utilisation level is a prompt to test whether some funding should amortise as term debt.
What the calculator deliberately does not decide
The calculator does not select a lender, predict approval, expose lender policy or provide personal financial or tax advice. It is a transparent comparison tool so you can test structure before seeking a quote.
Run the numbers
Compare my finance options
Use the enquiry form for an initial broker review. No lender application is made just by enquiring.
Compare my finance optionsSources and verification
General information only. It is not personal financial, tax or legal advice. Finance approval, pricing and structure are subject to lender assessment and your circumstances.