Personal Line of Credit Payoff Calculator: Months to Zero Out

See how long a personal line of credit takes to clear at a fixed monthly payment, and how much of that money is pure interest rather than principal.

✓ Editorially reviewed Updated May 17, 2026 By Ugo Candido
Balance & Payment
$
Outstanding balance drawn on the personal line of credit.
Personal LOC rates typically prime + 3 to 8 points, currently 11% to 17%. Some are unsecured (higher rate); HELOCs against home equity run much lower.
$
Fixed amount applied each month. Most personal LOCs require interest-only minimum payments; pay above the minimum to reduce principal.
Your estimate $—

Adjust the inputs and select Calculate for a full breakdown.

Compare Common Scenarios

How the numbers shift across typical situations for this calculator:

ScenarioTime to pay offTotal interestTotal paid
$10k · 12% · $300/mo3y 5m$2,224.95$12,224.95
$25k · 10% · $600/mo4y 4m$5,837.71$30,837.71
$5k · 15% · $200/mo2y 7m$1,032.66$6,032.66
$50k HELOC · 9% · $800/mo7y 1m$17,722.44$67,722.44

How This Calculator Works

Enter the current drawn balance, the LOC's interest rate, and the fixed monthly payment. The calculator charges interest each month, deducts the payment, and counts the months until the balance reaches zero. Most personal LOCs require only interest-only minimums; paying above the minimum is what actually reduces the balance.

The Formula

Debt Payoff Time

n = −ln(1 − r·B / P) / ln(1 + r)

B = balance, P = fixed monthly payment, r = monthly rate (APR ÷ 12), n = months to clear

Worked Example

A $10,000 personal LOC at 12% APR paid down at $300/month clears in 41 months — about 3.4 years — with roughly $2,225 of interest along the way. The minimum interest-only payment on that balance would be just $100/month, which never touches principal. The difference between the interest-only minimum and meaningful paydown is the gap most LOC borrowers underestimate.

Key Insight

Personal lines of credit are convenient but expensive when carrying a balance. Unsecured personal LOCs price at 11% to 17% APR currently — between credit cards and personal installment loans. HELOCs (secured by home equity) price at prime + 1 to 3 points, often half the rate of unsecured personal LOCs. If you have meaningful home equity, a HELOC consistently beats an unsecured personal LOC for any sustained balance.

Frequently Asked Questions

What is a personal line of credit?

An unsecured revolving credit line — borrow up to a limit, repay, and re-draw. Typical limits $1,000 to $100,000+. Rates higher than secured borrowing (HELOC, auto loan) because no collateral backs the loan.

What rate should I expect?

Unsecured personal LOC: 11% to 17% APR currently for prime credit. Subprime: 20% to 30% APR. HELOC (against home equity): prime + 1 to 3 points (currently 8% to 11%). Personal LOC sits between credit cards (higher) and HELOCs (lower).

Personal LOC vs personal loan?

Personal LOC: revolving, draw what you need, variable rate. Personal loan: lump sum, fixed payment, fixed rate. LOC suits irregular borrowing needs; personal loan suits one-time large expenses with planned payoff. Loans typically have lower rates than LOCs for the same borrower.

Does it affect credit score?

Yes — opened with a hard inquiry (temporary drop). Then the available limit increases your total credit available, which can improve utilization ratios on credit cards. Carrying high balances on the LOC itself hurts utilization. Missed payments hurt score same as any other revolving credit.

Should I take a HELOC instead?

If you have meaningful home equity, almost always yes. HELOC rates run half or less of unsecured personal LOC rates, and interest may be deductible if used for home improvements. The trade-off: HELOC uses your home as collateral; default risks the property.

Related Calculators

Methodology & Review

Ugo Candido ✓ Editor
Wrote this calculator and is responsible for its methodology and review.

The payoff is simulated month by month: interest is charged on the drawn balance at the variable rate, the fixed payment is deducted, and the months are counted until the balance reaches zero. The calculator assumes no new draws during payoff.

Written by Ugo Candido · Last updated May 17, 2026.