Investment Loan Calculator

See how leverage affects investment returns and the risk of falling short.

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Loan & Investment Details

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10 years

Leverage Analysis

Net Gain$89,374
Investment Value$259,374
Total Loan Cost$70,000
Effective Interest Rate7.0%
Leveraged Return6.6%

The investment return exceeds the borrowing cost, generating positive leverage.

How it works›

Model and assumptions. Compares compounded investment value with the borrowing payments and costs. The investment return is an assumption while debt service remains due; changing market returns, collateral requirements and tax treatment can alter the result.OpenStax: time value of moneyOpenStax: annuity formulas