Smart financial decisions made easy
Compare savings, loans, and FD options to make the best financial decision for your purchase. Get personalized recommendations based on your financial situation.
Compare multiple financial strategies side-by-side to see which option saves you the most money in the long run.
Get detailed breakdowns of interest earned, interest paid, total costs, and net benefits for each option.
Receive personalized recommendations based on your current savings, monthly capacity, and financial goals.
Make informed financial decisions quickly without complex calculations or financial advisor consultations.
Scenario: You have ₹10,000 saved and want to buy a ₹20,000 mobile phone.
Scenario: You have ₹5 lakh saved and want to buy a ₹10 lakh car.
Scenario: You have ₹30,000 saved and need ₹50,000 for home appliances.
Best option: Take Loan. Total interest cost: ₹661.85
✅ No interest cost
✅ Earn FD interest
⏱️ Wait 2 months
⚡ Buy immediately
❌ Pay ₹661.85 interest
📅 12 months tenure
⚡ Buy immediately
💰 Earn FD interest
❌ Net cost: ₹9961.85
✅ Enough saved
💰 Earn FD interest
📅 After 12 months
This option calculates how long you need to save to afford your purchase without taking any loan. Your existing savings are invested in Fixed Deposit (FD) to earn interest while you save additional money monthly.
How it works:
Best for: Non-urgent purchases, when you can wait, when loan interest is high
This option shows the cost of taking a loan immediately to make the purchase. You borrow only the shortfall amount and pay it back in EMIs over the loan tenure.
How it works:
Best for: Urgent purchases, when loan rate is low, when you have good credit score
This hybrid strategy involves putting your current savings in FD to earn interest while taking a loan for the shortfall. The net cost depends on whether FD interest earned is more or less than loan interest paid.
How it works:
Best for: When FD rate is higher than loan rate, immediate purchase needed, tax planning
Note: This works best when FD interest rate is higher than loan interest rate. Otherwise, Option 1 (save more) is better.
This option calculates how much you'll have after saving for a specific number of months. Useful when you have a deadline or want to see if you'll have enough by a certain date.
How it works:
Best for: Planning for future purchases, setting savings goals, deadline-based planning
A: There's no one-size-fits-all answer. Generally, saving more (Option 1) is financially best if you can wait, as you avoid paying interest. However, if the purchase is urgent or loan rates are very low, taking a loan might make sense. Use the recommendation feature to see which option saves you the most money.
A: FD interest is calculated using simple interest formula: Principal × Rate × Time. For example, ₹1,00,000 at 7% for 1 year = ₹1,00,000 × 7% × 1 = ₹7,000 interest. Maturity = ₹1,07,000.
A: EMI uses the formula: [P × R × (1+R)^N] / [(1+R)^N - 1] where P = Principal, R = Monthly Interest Rate, N = Number of Months. This ensures equal monthly payments covering both principal and interest.
A: Yes, FD interest is taxable as per your income tax slab. If you're in 30% tax bracket, effective FD return is lower. For example, 7% FD interest becomes ~4.9% after 30% tax. However, for quick comparison, we show gross interest. Consider tax implications for final decision.
A: Enter your average monthly savings capacity. If savings are irregular, use a conservative estimate. Remember, if you can't save consistently, taking a loan might be risky as you need to pay EMI every month without fail.
A: Yes! This tool works for any purchase amount. For big purchases, the calculations become even more important as the interest amounts are significant. Always compare all options before making large financial commitments.
A: Negative net cost means you actually earn money! This happens when FD interest rate is higher than loan interest rate. You earn more on FD than you pay on loan. However, this is rare in real scenarios. Always verify actual rates with banks.
1. Interest Rates: The rates shown are examples. Actual FD and loan interest rates vary by bank, credit score, and market conditions. Always check current rates with financial institutions.
2. Tax Implications: FD interest is taxable as per your income tax slab. Loan interest may be tax-deductible for certain purposes (home loan, education loan). Consult a tax advisor for accurate tax calculations.
3. Credit Score: Loan approval and interest rates depend on your credit score. Good credit score (750+) gets better rates. Check your credit score before applying for loans.
4. Emergency Fund: Never use your emergency fund (3-6 months expenses) for purchases. Always maintain emergency savings separate from purchase savings.
5. Loan Eligibility: Loan approval depends on income, credit history, and bank policies. EMI should ideally be max 40% of your monthly income.
6. This is a Calculator Tool: This tool provides estimates and comparisons. It's not financial advice. Consult a certified financial advisor for personalized advice based on your complete financial situation.
A Financial Planner is an intelligent tool that helps you make smart financial decisions by comparing different strategies for making purchases. Whether you want to buy a mobile phone, car, home appliances, or any other item, this tool analyzes whether you should save more money, take a loan, or use a combination approach.
The tool compares four main financial strategies: saving more and buying later (with Fixed Deposit interest), taking a loan immediately, combining FD investment with loan, and saving for a specific time period. It calculates FD maturity amounts, loan EMIs, total interest costs, and net benefits to help you choose the most cost-effective option.
Our Financial Planner is designed for anyone who wants to make informed financial decisions. It's especially useful when you have some savings but need more money for a purchase, and you're unsure whether to wait and save more or take a loan immediately.
Save Money: By comparing all options, you can identify which strategy saves you the most money. Sometimes waiting and saving more can save thousands in interest payments.
Make Informed Decisions: Instead of guessing, get detailed calculations showing exactly how much each option costs, including interest earned and interest paid.
Understand Trade-offs: See the trade-offs between waiting (time) and taking a loan (interest cost), helping you make decisions aligned with your priorities.
Plan Better: Use the time horizon feature to plan purchases in advance, knowing exactly how much you'll have saved by a specific date.
Input your current savings, desired purchase amount, FD interest rate, loan interest rate, monthly savings capacity, and loan tenure. The tool uses these values to calculate all options.
The tool automatically calculates FD maturity amounts using simple interest formula, loan EMIs using standard EMI formula, and compares total costs for each option.
View side-by-side comparison of all four options with detailed breakdowns showing interest earned, interest paid, total costs, and net benefits.
Receive personalized recommendation showing which option saves you the most money, with clear explanation of why it's the best choice for your situation.
A fixed deposit is a financial instrument where you deposit money with a bank for a fixed period at a fixed interest rate. FD interest is calculated using simple interest: Principal × Rate × Time. FD interest is taxable as per your income tax slab.
EMI is the fixed monthly payment you make towards a loan. It includes both principal and interest components. EMI is calculated using the formula: [P × R × (1+R)^N] / [(1+R)^N - 1] where P = Principal, R = Monthly Rate, N = Number of Months.
Net cost is the difference between loan interest paid and FD interest earned. If net cost is negative, you actually earn money (FD interest > Loan interest). If positive, you pay more in loan interest than you earn from FD.
FD Interest: Taxable as per your income tax slab. If you're in 30% bracket, 7% FD becomes ~4.9% after tax.
Loan Interest: May be tax-deductible for home loans (Section 24), education loans (Section 80E), and business loans.
Net Calculation: Always consider after-tax returns when comparing FD vs Loan options.
Good Credit (750+): Get better loan rates, lower EMIs, easier approval.
Poor Credit (<650): Higher interest rates, may need to save more instead.
Check Before Applying: Always check your credit score before applying for loans to know what rates to expect.
Never Touch Emergency Fund: Keep 3-6 months expenses separate. Don't use it for purchases.
Separate Savings: Maintain emergency fund separately from purchase savings.
Financial Security: Emergency fund protects you from unexpected expenses without taking loans.
40% Rule: EMI should not exceed 40% of your monthly income for comfortable repayment.
Buffer: Keep 20-30% buffer for unexpected expenses even after EMI payment.
Job Security: Consider job stability before committing to long-term EMIs.
Make smart financial decisions with our free online financial planner tool. Compare savings, loans, and Fixed Deposit (FD) options to determine the best financial strategy for your purchase. Whether you're planning to buy a mobile phone, car, home appliances, or any other item, our financial planner helps you decide whether to save more, take a loan, or use a combination strategy.
Our financial planning calculator compares multiple options side-by-side: saving more and buying later (with FD interest), taking a loan immediately, combining FD investment with loan, and saving for a specific time period. Get personalized recommendations based on your current savings, monthly savings capacity, interest rates, and financial goals.
The tool calculates FD maturity amounts, loan EMIs, total interest costs, and net benefits/costs for each option, helping you make informed financial decisions. All calculations are done instantly in your browser - no sign-up required, completely free, and your data is never stored.
Compare 4 different financial strategies: Save More, Take Loan, FD + Loan, and Time-Based Savings.
Get personalized recommendations showing which option saves you the most money based on your financial situation.
See detailed breakdowns of FD maturity, loan EMIs, interest earned, interest paid, and net costs/benefits.
Learn from real-world scenarios like buying mobile phones, cars, and home appliances with practical examples.
Get expert financial tips on when to save, when to take loans, and how to optimize your financial decisions.
Compare all financial options in one place with detailed calculations and recommendations.
Easy-to-use interface with clear explanations - no financial expertise needed to make smart decisions.
Get instant calculations and recommendations - no waiting, no sign-up, completely free.
All calculations happen in your browser - your financial data is never stored or shared.
Making the right financial decision can save you thousands of rupees. Our financial planner tool helps you understand the true cost of each option, including interest earned on savings and interest paid on loans.
Key factors to consider: FD interest rates (typically 6-8%), loan interest rates (typically 8-15%), your monthly savings capacity, and how urgently you need the purchase. Generally, if you can wait, saving more is financially better as you avoid paying loan interest. However, for urgent purchases or when loan rates are very low, taking a loan might make sense.
The FD + Loan combination can be beneficial when FD interest rate is higher than loan interest rate, though this is rare. Always compare the net cost (loan interest minus FD interest) to make the best decision. Remember to factor in tax implications - FD interest is taxable, while some loan interests (like home loans) may be tax-deductible.