Payback maths

Payback maths: will it pay for itself?

The numbers that decide whether borrowing to grow is a boost or a burden — explained with worked examples you can copy for your own plan.

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ROI on borrowed money

How to work out the return on a business loan for growth: the simple formula, a worked example and the three numbers that decide whether it pays off.

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Payback period

How to calculate the payback period on a growth investment, why ramp-up changes the answer, and how to match your loan term to the month it pays for itself.

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Total cost of finance

Work out the total cost of a business loan in dollars — interest, fees and charges over the full term — and use it to compare growth funding offers fairly.

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Gross margin and growth

Gross margin vs markup explained for growth planning: how to calculate each, why mixing them up wrecks payback maths, and how to find your margin on new work.

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Acquisition cost and lifetime value

Customer acquisition cost and lifetime value explained for Australian small businesses: formulas, a worked example and how both decide if marketing pays back.

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New hire break-even

When does a new employee pay for themselves? Work out a hire's full cost, the gross profit they unlock and their break-even month, with a worked example.

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Ramp-up time

Every growth move has a slow start. How to estimate the ramp-up period, model the cash gap it creates, and fund it so the business isn't squeezed early on.

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Stress-testing your plan

How to stress-test a growth plan before borrowing: five what-ifs to run, how to read the results, and how to change the plan so it survives a bad run.

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Borrow now or save up?

Borrow to grow now, or save up and pay cash later? How to compare the cost of finance with the profit you'd miss while waiting, with a worked example.

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Run the numbers first

Will your move pay for itself?

Weigh the total cost of finance against the extra gross profit your growth move should earn, and see the month it pays for itself. Or take the eight-question readiness check.

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