Find out how much your loan could cost

1 year
This rate is subject to change depending on your specific circumstances
Fees are variable and maybe charged as a % of borrowing or as a fixed fee. If you are unsure you can leave this box blank but remember to check what fees you might be expected to pay.
Total cost of social investment
Includes capital repayment, interest and fees
Monthly repayments

This website and calculator are designed as an educational tool only, and is not intended to constitute investment, legal, tax or other professional advice.

Nothing on this page or on this website should be construed as a solicitation or offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or to provide or obtain any investment advice or service.

No guarantee, representation or warranty of any kind is given as to the accuracy, timeliness or completeness of the information and we do not accept any responsibility for any errors or omissions in this information or any of the information on the websites of such service providers.

How The Cost of Capital Calculator Works

This cost of capital calculator provides an estimate of how much social investment could cost for your organisation, and what the monthly repayments might be.

The purpose of this page is to provide an example of how the cost of capital in social investment may work. Various additional factors, such as the providers of the capital, specific details, rates and fees will affect monthly repayment rates.

You will also need to consider:

  • What type of social investment you are considering e.g. a secured loan, revenue participation loan or charity bond ‘the product’ (find out more about the different types and which ones might be right for you here)
  • How long they are going to lend their money for ‘the term’.
  • How likely they are to get their money back ‘the risk’
  • How much does it cost them to make the deal happen ‘the fees’

Example 1

A charity borrows £100,000 in the form of a secured loan from a social bank to buy new premises from which to operate.

This is a secured loan meaning that a charge against the asset (in this case property) is made. In the event that  the loan is not repaid the asset could be used to repay the loan.

Capital amount: £100,000

Term: 10 years

Interest: 3%

Fees: Payable in one lump sum upfront so does not contribute to the cost of capital

Monthly repayment: £965.61

Example 2

A social enterprise borrows £45,000 as working capital to help cashflow a new contract they are delivering for their local authority.  

This is an unsecured loan and they will only receive payment from the local authority if they deliver the outcomes agreed in the contract. They will use the money from the investment to recruit additional staff to deliver the contract and to cover the cost of their wages.

Capital amount: £45,000

Term: 3 years

Interest: 7%

Fees: £675 (1.5%)

Monthly repayment: £1389.47