Section 08
Franchise calculators
Two quick checks before you sign: when your money comes back, and whether the loan instalment leaves you anything to live on.
Payback calculator
When will the money you put in come back? Use your own numbers — ask two or three existing franchisees what they really sell.
Profit per month₹35,000
Money back in4 yr 7 mo
Break-even sales per month₹2 lakh
Return per year22%
Before tax and loan repayments. Gross margin = sales minus the cost of the goods you sell, as a share of sales.
Can I afford it?
How much loan you would need, the monthly instalment, and what is left from the profit above.
Your share of the cost: 30%
Loan needed₹13.3 lakh
Monthly instalment (EMI)₹28,917
Profit left after EMI₹6,083
Banks usually ask you to put in part of the cost yourself, and the rate depends on the bank and your profile. MUDRA loans have no collateral up to their limit — check the current limits with your bank.