Compare 2 very different ways of reaching your goal with this calculator. Here’s how:
Enter your Target Amount: The financial goal you’re aiming for, like a down-payment for a house.
Adjust the Loan Duration and Annual Loan Rate sliders: These determine the period and the expected annual rate of the loan.
Adjust the Saving Duration and Annual investment growth (%) : this determines how long you plan to save for and the expected annual growth rate of your investments.
Review Monthly Savings or Loan Payments: Our calculator shows the monthly amount needed to reach your goal through saving/investing or the monthly payment for a loan.
Understand the Total Contributions and Total Profit for savings: It helps you see the total amount saved and the profit earned over the investment period.
For accurate rates, consider searching online for the current loan interest rates and investment growth rates. Rates can vary based on the financial institution and the type of investment.
Use this calculator to explore different scenarios and make informed decisions about saving versus taking a loan for your financial goals.
Get Started: Enter an amount
Option 1: Taking a loan
Each monthly loan payment will be: 0
Your total payments will be: 0
The total additional cost of taking this loan is: 0
Option 2: Save & invest in advance
You will need to contribute monthly savings of: 0
Your total contributions to achieve this amount will be: 0
The total profit you gained by saving/investing in advance is: 0
Is it better to save in advance or take a loan?
Disclaimer: Both the loan and investment rate use annual growth and compound monthly. This calculator provides estimations only and does not constitute financial advice. Remember, savings growth and loan repayments will be impacted by inflation. Investment returns are never guaranteed and loan rates may vary annually, neither of which are covered in this calculator. Users must consider these factors and seek professional financial advice.