That 9% APR isn't what it's actually costing you.

Fixed fees don't care how much of the line you use. See what a line of credit actually costs once its fees are measured against your real average balance, not the limit.

Illustrative estimate · Not financial advice

Line of credit true cost

That 9% APR isn’t what it’s actually costing you.

Annual fees and draw fees don’t change with how much of the line you actually use — so a line you draw lightly can cost far more than its advertised rate once fees are counted against the balance you actually carry.

Your line of credit

Credit limit

The total line you were approved for

Average balance drawn

What you actually carry on average over the year — not the limit

Interest rate (APR)9.00%

Annual / maintenance fee

Flat fee charged whether or not you draw on the line

Draw fee1.00%

Charged on the balance drawn, if your lender charges one

Effective rate on what you actually use

12.5%

vs. the 9.00% APR on the term sheet

What that adds up to per year

Interest$1,800

Draw fee$200

Annual fee$500

Total annual cost$2,500

Utilization

You’re carrying 20.0% of your $100,000 limit on average. The lower that number, the more the fixed fees dominate your effective rate.

Illustrative estimate only. Assumes a constant average balance over the year — real usage fluctuates, which changes actual interest charged. Draw fees and annual fees vary by lender and product; confirm actual terms before signing.