Business Loan ROI Calculator
Determine if taking a business loan makes financial sense by comparing loan cost to expected revenue increase.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
Monthly PMT = PV × r/(1-(1+r)^-n); ROI = Net Annual Benefit / Loan Cost
A business loan makes sense when the expected return exceeds the total cost of borrowing. ROI > 20% is generally good.
Frequently Asked Questions
When should a business take out a loan?
When the investment generates returns above the loan interest rate. Also consider SBA loans (lower rates), business lines of credit, or equipment financing.