Credit Card vs Business Loan Cost Calculator
For a specific expense, compare the total interest cost of a credit card you pay off over a target number of months against a fixed-term loan.
Credit Card vs Business Loan Cost Calculator
For a specific expense — which is cheaper, a credit card you pay off over a target number of months, or a fixed-term loan with predictable amortization?
Credit card path
Business loan path
Credit card
$2,371
interest
$1,448/mo
Business loan
$3,676
interest
$778/mo
The credit card is cheaper by an estimated $1,305 in interest at these terms.
Rule of thumb: cards tend to win for expenses paid off in under ~3 months; fixed-term loans tend to win for longer payoff windows because loan APRs typically run lower and the amortization is predictable. Doesn’t account for card rewards (which can offset some interest cost) or loan origination fees (which add to the loan cost) — use as a directional check.
Looking for a lower-APR card instead?
Compare cards head-to-head in our card comparisons or take the quiz to find your match among 0% APR and low-APR cards.
FAQ
When does a credit card beat a fixed-term loan?
Cards tend to win for expenses you can pay off quickly — commonly under about 3 months — because there's no origination fee and the higher APR doesn't have long to compound. The longer the payoff window, the more a lower-APR loan's amortization tends to win.
Does this account for rewards or origination fees?
No — it's a pure interest-cost comparison. Card rewards (cashback or points) can offset some of the card's interest cost, and loan origination fees add to the loan's true cost. Factor those in yourself before deciding.
What if I don't know my exact 'months to pay off' on the card?
Use your most realistic estimate for how long you'd take to clear the balance. A shorter target month count assumes larger monthly payments and lowers the card's total interest.
This calculator is for general education, not financial, legal, or tax advice. Results are estimates based on the numbers you enter and standard month-by-month amortization; your actual interest depends on your issuer’s balance-calculation method, compounding, and the exact APR, fees, and terms of your card, which vary by issuer. Confirm current numbers with your card issuer before making a decision. ClearValue Cards earns compensation solely through our CardRatings partnership, paid when a reader clicks out to CardRatings from our match tool.