Assumptions
- Side by side
- FD or liquid fund
- Monthly table
Returns are assumed constant and tax is not included. Results are estimates to compare options, not financial advice. Everything is calculated in your browser; nothing you type is sent anywhere.
FAQ
What do the two columns compare?
Both start with the same cash. Foreclose now pays the outstanding principal and any charge today, so no EMIs are left. Keep loan + SWP invests that cash and withdraws the EMI from it every month. The table lines up what each option costs and what is left when the loan would have ended.
What does 'Top-up from your pocket' mean?
If the investment runs out before the last EMI, the remaining EMIs have to be paid from your own money. The calculator never lets the fund go negative; it pays what it can in the last month and shows the rest as a top-up.
Which number decides the winner?
Money left at the end of the tenure minus any top-ups. The 'ahead in today's money' row adjusts that for timing, using the same return as the investment.
Why is the loan rate worked out instead of entered?
It is calculated from the outstanding principal, EMI and remaining months, so it matches your actual schedule even after rate resets or part payments.
Does it include tax?
No. FD interest and fund gains may be taxed, and some loans give tax benefits. Both are left out.