Rytvae Consulting · Think Right · Invest Right
Cash vs Loan Calculator
Result
Chart
Show formula & working
Loan: (amount − fee) stays invested and grows for the tenure; the EMI is paid from income
Cash: the amount is spent now; the EMI you would have paid is invested every month instead
Details
How this works
Paying cash saves interest; borrowing keeps your investments working. Which wins depends on whether your investments earn more after tax than the loan costs.
The break-even return is the investment return at which both choices end level.
Frequently asked questions
So should I always borrow if returns beat the loan rate?
Returns are uncertain and the EMI is fixed. Borrowing also adds risk if income falls.
What about an emergency fund?
Never use your emergency fund to pay cash — keep that aside first.
Does the fee matter?
Yes, it raises the loan's true cost. It is included here.