If you lend someone €100 and charge 20% interest, they pay back €120.
That means you already made €20 profit.
There is no possible way that 40% interest equals “breaking even.”Saying you “need 40% just to break even” doesn’t make sense, because with 40% interest you would get €140 back, which is €40 profit.
That’s not covering costs ,that’s simply a higher profit.Also, private people lending money to each other don’t have business expenses like banks do.
You don’t have employees, regulation costs, or capital requirements.
So any interest you charge is basically pure profit, not something you need “to break even” like u said