EMI vs FD Calculator
Compare buying on EMI vs paying full amount and investing in FD
Understanding the Scenarios:
Scenario 1 (EMI): Take a loan, keep full amount invested, pay EMI from investment monthly. You have no other income.
Scenario 2 (Full Payment): Pay full amount upfront - you get the item but have ₹0 left.
Input Parameters
💡 When to Choose EMI
Choose EMI when your investment returns are higher than or close to the loan interest rate. This strategy works best when you have high-return investment opportunities and disciplined cash flow management.
🏦 Tax Considerations
Remember that FD interest is taxable as per your income tax slab. This calculator doesn't account for taxes, which can significantly impact your actual returns. Factor in your tax bracket before making decisions.
🎯 Liquidity Matters
Paying full amount locks up all your capital. EMI preserves liquidity and emergency funds. Even if mathematically slightly costlier, EMI can provide valuable financial flexibility for unexpected needs.