EMI vs Cash Calculator

Decision Tool100% Free & Authoritative

Decide whether to pay for a big purchase upfront in cash or opt for EMI while keeping your liquid savings invested in mutual funds or fixed deposits.

Enter Values

₹

Discount offered by seller for upfront full payment.

₹
12 months

0% for No-Cost EMI, or 13%–16% for standard credit card EMI.

Return on liquid savings (e.g., 7% FD or 12% mutual funds).

Best Financial StrategyLive Preview
Pay Cash Upfront (Save on loan interest)

Recommendation: Pay Cash Upfront (Save on loan interest). Paying full cash requires an immediate outflow of ₹95,000. Choosing EMI results in total payments of ₹1,00,000 (₹6,667/month), but allows your remaining liquid cash to generate an estimated ₹3,750 in investment returns over the tenure.

Total Cost: Full Cash
₹95,000
Includes upfront cash discount
Total Outflow: EMI Mode
₹1,00,000
₹6,667/mo EMI
Opportunity Returns Earned
₹3,750
From investing retained cash
Net Financial Difference
₹1,250

Total Outflow Comparison

Full Cash Outflow49.7%
Net Effective EMI Cost50.3%
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Option Breakdown Comparison

Understanding Your Result

Recommendation: Pay Cash Upfront (Save on loan interest). Paying full cash requires an immediate outflow of ₹95,000. Choosing EMI results in total payments of ₹1,00,000 (₹6,667/month), but allows your remaining liquid cash to generate an estimated ₹3,750 in investment returns over the tenure.

Frequently Asked Questions

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