EMI vs FD Calculator
Pay in cash, or borrow and keep the cash in an FD that pays the EMIs: which leaves you ahead after tax
Borrowing costs you
₹1,15,967
- FD rate after tax
- 4.82%
- Loan rate
- 8.50%
- EMI
- ₹20,517
Compared with paying the whole amount in cash today.
Over the loan
- EMIs paid
- ₹12,30,992
- Loan interest
- ₹2,30,992
- FD interest earned
- ₹1,67,187
- Tax on it at 31.2%
- ₹52,162
- FD left when the loan ends
- -₹1,15,967
Year by year
- Year 1
- FD ₹7,97,531 · loan ₹8,32,371
- Year 2
- FD ₹5,85,093 · loan ₹6,49,925
- Year 3
- FD ₹3,62,196 · loan ₹4,51,352
- Year 4
- FD ₹1,28,323 · loan ₹2,35,228
- Year 5
- FD -₹1,15,967 · loan ₹0
Rates as per Union Budget 2026 (no change to rates) · Income-tax Act, 2025 · verified 2026-08-13. Figures apply to tax year 2026-27. The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026 and renumbers sections; rates are unchanged. This tool is an estimate, not tax advice.
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How this is calculated
Formula
each month: FD += FD × fd rate ÷ 12 × (1 − tax) − EMI
With your numbers
- 1EMI₹10,00,000 at 8.50% over 60 months = ₹20,517
- 2FD rate after taxfd rate × (1 − slab × (1 + cess))7.00% × (1 − 31.2%) = 4.82%
- 3FD at the end-₹1,15,967
- Once the FD runs out, further EMIs come from elsewhere and earn nothing.
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