All calculators
Private lending returns
Investor Yield
Private lending headline rates are gross. Enter capital deployed, target rate, term, fund fees and your marginal tax rate — see net and after-tax yield, and how it compares to a term deposit.
$
% p.a.
Headline rate before fees. AU private credit is often 8–14%.
months
% p.a.
What the manager takes before you see a return.
%
Your rate. 47% includes the Medicare levy at the top bracket.
% p.a.
A comparison floor for the risk you're taking on.
Net yield (after fees)
7.50%
After-tax: 3.98% at a 47% marginal rate.
Gross return at 9.00%$45,000
Less fund / management fee($7,500)
Net return (pre-tax)$37,500
Less tax($17,625)
Net return (after tax)$19,875
Net yield p.a. (pre-tax)7.50%
Net yield p.a. (after tax)3.98%
Term deposit at 4.50% (after tax)$11,925
After-tax uplift vs term deposit$7,950
On these inputs the position returns $7,950 more after tax than a term deposit over the term. That uplift is the compensation for capital risk, illiquidity and security quality — judge whether the loan book justifies it.
Assumptions & method
- Simple interest over the term — not compounded or reinvested.
- Assumes the loan performs in full with no capital loss or arrears. Private credit risk is real and borne by the investor.
- Tax is applied as a flat marginal rate on net income; structure (trust, company, SMSF) will change the actual outcome.
- General information only — not financial product, tax or investment advice. Wholesale / sophisticated investors only.
Beyond the numbers
A number is a starting point, not an answer
These tools model the mechanics. The decision depends on structure, timing and the specifics of your scenario — that's the conversation worth having.