farmcfo.com.au/tools/new-enterprise-payback · 0412 759 847New enterprise payback
Enter the capital and starting costs, how many years to reach full size, the gross margin and extra overheads at full size, and the interest rate. The calculator builds the margin up evenly, charges interest on the running deficit, and shows the peak funding needed, the payback year and a year-by-year table.
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- Money in up front
- $350,000
- Peak funding needed
- $350,000
- Payback
- Year 5
The deepest the running balance goes, counting the money in up front and interest.
When the running balance turns positive.
| Year | Gross margin | Overheads | Interest | Net | Running balance |
|---|---|---|---|---|---|
| 1 | $50,000 | $20,000 | $25,305 | $4,695 | -$345,305 |
| 2 | $100,000 | $20,000 | $24,966 | $55,034 | -$290,271 |
| 3 | $150,000 | $20,000 | $20,987 | $109,013 | -$181,257 |
| 4 | $150,000 | $20,000 | $13,105 | $116,895 | -$64,362 |
| 5 | $150,000 | $20,000 | $4,653 | $125,347 | $60,985 |
| 6 | $150,000 | $20,000 | $0 | $130,000 | $190,985 |
| 7 | $150,000 | $20,000 | $0 | $130,000 | $320,985 |
| 8 | $150,000 | $20,000 | $0 | $130,000 | $450,985 |
| 9 | $150,000 | $20,000 | $0 | $130,000 | $580,985 |
| 10 | $150,000 | $20,000 | $0 | $130,000 | $710,985 |
The example is an invented enterprise costing $300,000 in capital and $50,000 in starting stock and working capital, reaching full size in 3 years with a $150,000 gross margin and $20,000 of extra overheads, funded at 7.23% (RBA, August 2026).
The working
- Year 1 starts at minus (capital + starting stock and working capital).
- Gross margin in year y = margin at full size x the smaller of (y / years to full size) and 1.
- Interest = running deficit at the start of the year x rate.
- Net = gross margin - extra overheads - interest. The running balance adds each year's net.
- Payback year = the first year the running balance is zero or better. Peak funding = the deepest balance.
General information only. This calculator doesn't take account of your circumstances and isn't tax, credit or financial product advice. Check figures with your accountant before relying on them.
Want the numbers done for you?
Farm CFO builds the budget, the monthly cashflow and the tests your lender will run, at a fixed price.
Read next: Adding a new enterprise
Questions
Why does peak funding matter more than payback?
Because the bank funds the peak. If the build-up is slower or prices fall, the deficit runs deeper and longer, so test a slower start too.
What about approvals?
Licences, council consent and biosecurity rules vary by state and enterprise. Budget the time and cost of getting them before you commit.