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Model the payment and the payback

Adjust the inputs to see your monthly payment, total cost of capital, and whether the return on the money clears what it costs.

$150,000
11.5%
36 months
8%

Estimate the incremental annual profit this capital will generate — for example, the added gross margin from new equipment or inventory.

Monthly payment

$4,946

Total of payments
$178,070
Total interest (cost of capital)
$28,070
Principal
$150,000

Return on borrowed capital

+5.3%

Projected gross return over term
$36,000
Net gain after interest
$7,930
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Estimates only. Actual offers depend on underwriting.

Reading the output

Cost of capital is the number that matters

A lower rate on a longer term can still cost more in total dollars. Compare total interest against the return the capital produces, then pick the structure with the widest gap in your favor.

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