Free Calculator

Leverage ROI Calculator

Enter borrow terms and expected investment return. The tool returns the after-tax spread, break-even return, and the market drawdown that would neutralize the strategy. Educational only — never a recommendation to borrow to invest.

Borrowed principal ($)

Borrow APR (%)

Holding period (months)

Expected annual return (%)

Marginal tax rate on gains (%)

Upfront fee (% of principal)

After-tax investment gain

$1535

Total borrow cost

$600

Net dollar outcome

$935

Annualized spread (after tax)

3.74%

Break-even pre-tax return

3.16%

You need at least this annualized return to justify the borrow.

Drawdown that erases borrow cost

−3.00%

A market drop of this magnitude during the holding period reduces the strategy to break-even before tax.

Estimate only — not an offer or approval decision

Assumptions used

Investment return compounds annually at the entered rate for the full holding period.
Borrow interest accrues linearly at APR × time — no capitalization or promo expiration modeled.
Upfront fee is charged once at origination.
Marginal tax rate applies only to the investment gain, not to interest cost.

Not included in this estimate

Sequence-of-returns risk and volatility drag
Margin calls, forced liquidation, and account-level leverage limits
Promotional-APR expiration and deferred/back-interest
Impact of the new tradeline on your credit score and future borrowing capacity

This tool is educational and does not recommend borrowing to invest. Leverage amplifies both gains and losses; only qualified investors should model these scenarios with a financial professional.

Real rates, payments, and eligibility depend on the lender or issuer, your credit profile, and current market conditions. Verify current terms directly with the provider before making a financial decision.