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Credit limit calculator

Enter the business's average monthly revenue and the multiplier the bank uses to size the limit. The calculator works out an approximate credit limit.

Usually 2–4 months of turnover, but the exact multiplier depends on the bank, industry and credit history — use the one that applies to you

Result

Approximate credit limit

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Credit limit = average monthly revenue × bank multiplier. This is simplified but common logic: the bank estimates how much credit a business can service based on account turnover, not just balance or collateral.

The multiplier isn't a universal constant — it can differ several times over between banks and industries, and the actual decision always adds a review of credit history, debt load and financial statements. Here it's an editable field for a rough estimate, not a guaranteed standard.

The result is a benchmark for a preliminary estimate, not an approved limit — a bank's real decision also weighs existing debt load — check that separately with the business debt load calculator.

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