Free ROI on Loan Calculator
Before you borrow to invest, this tool tells you whether the expected return actually beats the cost of the loan. It nets out total interest from the projected revenue and gives you a clean ROI percentage.
Results
Disclaimer: This calculator provides estimates only and does not constitute financial advice. Actual loan terms may vary by lender.
About the ROI on Loan Calculator
The formula
Net ROI (%) = ((Expected Return − Loan Cost) / Loan Amount) × 100, where Loan Cost is total interest paid over the tenure. A positive ROI means the investment beats the loan; a negative ROI means you'd be borrowing to lose money.
Getting the return estimate right
The most common mistake is using gross revenue as the 'return'. Use net contribution — revenue minus the variable costs of delivering it. Otherwise the tool overstates your ROI and the loan looks safer than it is.
The right benchmark
A loan-funded project should beat your business's normal cost of capital by a comfortable margin (typically 5%+ over the loan rate). Anything closer is not worth the debt-service risk.
Frequently asked questions
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