Interest Bleed Calculator
See exactly how much external financing costs you over time, including the opportunity cost of capital that could have stayed in your business.
Your Financing Details
Equipment, vehicles, inventory, etc.
Bank loan or equipment financing rate
How often do you replace equipment/inventory?
Your Interest Bleed
The true cost of external financing over time
Interest paid + opportunity cost
| Year | Interest Paid | Opp. Cost | Total Bleed |
|---|---|---|---|
| 5 | $17,097 | $5,783 | $22,880 |
| 10 | $34,194 | $19,304 | $53,498 |
| 20 | $68,389 | $80,917 | $149,305 |
| 30 | $102,583 | $218,298 | $320,881 |
What Does This Mean?
Interest Paid
This is the direct cost you pay to banks and financing companies. It's money that leaves your business and never comes back.
Opportunity Cost
If that interest money had stayed in your business earning returns, it would have compounded over time. This represents lost growth.
The Alternative
With a properly designed whole life policy, you could finance these same purchases through your own “family bank” — keeping the interest payments within your control and building wealth instead.
“The rich rule over the poor, and the borrower is slave to the lender.”
Proverbs 22:7
Want a Personalized Analysis?
This calculator provides general estimates. Your specific situation may have additional factors to consider.
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