HomeLoan & ROI Calculator

Loan & ROI Calculator

Calculate loan repayments and return on investment for any business purchase or financial decision.

🏦 Loan Repayments📊 ROI Analysis📅 Amortisation Schedule

Loan Details

Currency

Loan Amount

Annual Interest Rate (%)

Loan Term

Start Month (optional)

Loan Summary

Export

Monthly Payment

—

per month

Total Interest

—

total cost of borrowing

Total Repayment

—

principal + interest

Amortisation Schedule (first 24 months)

Month	Payment	Principal	Interest	Balance

Investment Details

Calculate the return on any business investment or purchase

Currency

Initial Investment Cost

Expected Annual Return / Benefit

Revenue gained or costs saved per year

Investment Period (years)

Annual Operating Cost (optional)

ROI Analysis

Total ROI

—

return on investment

Payback Period

—

to recover investment

Net Profit

—

over full period

Annual ROI

—

per year average

Understanding Business Loan Costs

When taking out a business loan, the advertised interest rate only tells part of the story. The total cost of borrowing includes the cumulative interest paid over the full loan term, which can significantly exceed your expectations. A $50,000 loan at 8.5% over 5 years costs over $11,000 in interest alone — understanding this upfront helps you evaluate whether the loan makes financial sense for your business.

How to Evaluate Business Investment ROI

Return on investment (ROI) measures how much value a business investment generates relative to its cost. A positive ROI means the investment pays for itself and generates additional profit. The payback period — how long it takes to recover the initial investment — is equally important: a high ROI over 10 years is less attractive than a moderate ROI over 18 months if cash flow is a concern.

Business loan rates vary by lender, creditworthiness, and loan type. Typical ranges: bank business loans 6–15%, SBA loans (USA) 6–9%, alternative lenders 15–40%. Use the rate quoted in your loan offer or a conservative estimate for planning purposes.

The annual return can include direct revenue generated by the investment (e.g., a new machine enabling more production), cost savings (e.g., software replacing manual labour), or a combination. Be conservative in your estimates — overestimating returns is one of the most common investment planning errors.

For investments over 3+ years, inflation can meaningfully affect real returns. To adjust for inflation, subtract the inflation rate from your expected annual return rate. For example, if you expect 15% returns and inflation is 3%, use 12% as your effective return.