Loan vs Cash Calculator
Compare the financial impact of financing a vehicle versus paying cash upfront. Factor in loan interest, investment returns, and tax benefits to make the smartest financial decision.
Vehicle & Loan Details
₹
₹2L
₹1Cr
₹
(20%)
0%
50%
years
1 year
10 years
%
6%
18%
%
5%
20%
Financial Recommendation
💰 Pay Cash & Invest
Total Savings: ₹1,25,000
over 5 years compared to financing
Pay Cash Option
Initial Payment:
₹10,00,000
Investment Returns:
+₹6,40,000
Net Position:
-₹3,60,000
Finance Option
Down Payment:
₹2,00,000
Total EMI Paid:
₹10,80,000
Investment on Savings:
+₹5,12,000
Net Position:
-₹4,85,000
Detailed Financial Analysis
Vehicle Price
₹10,00,000
Down Payment
₹2,00,000 (20%)
Loan Amount
₹8,00,000
Monthly EMI
₹17,000
Total Interest
₹2,20,000
Investment Rate
12% p.a.
Better Option:
Pay Cash
Year-by-Year Analysis
| Year | Cash Option | Loan Option | Difference |
|---|
💡 Decision-Making Tips
Investment Returns
If you can earn more on investments than loan interest, financing may be better.
Emergency Fund
Keep liquid cash for emergencies. Don't deplete all savings for a cash purchase.
Tax Benefits
Consider tax deductions on loan interest, especially for business use vehicles.