📊 Enter Your Numbers
🏦 Take a Loan
💰 Use Your Savings
See the real math. Which option costs you less — taking a loan or using your savings?
No ads. No login.
Use savings if: Your savings return rate is lower than the loan interest rate. For example, if your savings earn 6-7% FD interest but the loan costs 14-18%, using savings saves you money.
Take a loan if: Your savings are invested at a higher return than the loan rate. Example — if your money is in equity mutual funds earning 12-15%, and a loan costs 8.5% for a home, keep the investments and take the loan.
Emotional factor: Being debt-free has psychological value that this calculator doesn't capture. Many people sleep better without EMIs even if the math says loans are cheaper.
Emergency fund rule: Never drain your emergency fund for a loan vs savings calculation. Keep 6 months of expenses liquid before using any savings.
Tax angle: Home loan interest (Section 24) and principal (80C) give tax benefits. This makes home loans even cheaper than the stated rate for taxpayers. Always factor this in for home loans.