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Equity vs. Debt:
Cost of Capital Calculator

Should you borrow or sell shares? Compare the true 5-year cost of a business loan (Interest) versus selling equity (Lost Profits) to make the smartest financial decision.

Financial Projections

Input your funding needs and forecast.

R 500,000
R 200,000

Projected average net profit per year.

20%
1% 49% (Max Control)

5-Year Cost Comparison

Cost of Debt

R0.00

Total Interest & Fees

Cost of Equity

R0.00

Profit Share Given Away

Adjust inputs to see recommendation.

Beyond the Numbers

The "Real" Cost of Your Decision

Control & Autonomy

Debt: You retain 100% control. The bank doesn't vote.
Equity: Investors get voting rights and a say in major decisions.

Risk Profile

Debt: Must be repaid regardless of revenue. High monthly cash flow pressure.
Equity: No monthly repayment. Risk is shared if the business fails.

Strategic Value

Debt: Just money. Transactional relationship.
Equity: "Smart Money." Investors often bring networks, mentorship, and experience.

Need Capital Without Losing Equity?

If the numbers show that debt is cheaper than selling your shares, start your application for a fixed-term business loan today.

View Debt Options