Funding Options Comparison
Compare two funding options side by side — bank loan, angel investment, venture capital, or government grant. See monthly payments, total interest, and equity given away for each.
How it's calculated
Monthly Payment = P × r(1+r)^n ÷ ((1+r)^n − 1)Equity Cost = Funding × Equity %Effective Cost = Total Interest + Equity Given Away
Frequently Asked Questions
- What is the cheapest form of business funding?
- Grants are cheapest (no repayment or equity) but highly competitive. Government-backed loans (e.g. Start Up Loans at ~6%) are often cheaper than commercial loans. Equity funding has no cash repayment but costs a share of future profits and exit value.
- Should I choose debt or equity funding?
- Debt funding preserves ownership but creates repayment obligations. Equity funding brings no fixed repayments but dilutes your stake. High-growth startups often prefer equity; cash-generating businesses often prefer debt.
- What equity percentage should I offer investors?
- This depends on your valuation and the amount raised. Seed rounds typically see 10–25% dilution. Use the Startup Valuation Calculator to estimate a fair pre-money valuation before deciding on dilution.