SIP vs EMI Calculator
What if you invested your EMI amount in a SIP instead? See the real opportunity cost of taking a loan.
If you take a loan (EMI path):
LOAN AMOUNT (YOU GET)
TOTAL PAID (EMI × MONTHS)
INTEREST PAID TO BANK
If you invest same EMI as SIP:
TOTAL INVESTED
SIP CORPUS BUILT
WEALTH GAIN FROM SIP
OPPORTUNITY COST OF LOAN
Interest paid + Wealth you missed = Total cost of taking the loan
How This Works
When you take a loan, you pay EMI every month to the bank. The total amount you pay is always more than the loan (due to interest). This calculator flips the question: what if you saved that same EMI as a SIP in mutual funds?
The "opportunity cost" shows the total financial impact — the interest you'd pay on a loan PLUS the wealth you'd miss by not investing. It helps you decide whether buying on EMI is worth it, or if you should save-then-buy.
When Should You Take a Loan?
- Appreciating assets (home, education) where the asset value grows faster than loan interest
- Emergency situations where waiting isn't an option
- When loan interest rate is lower than your investment returns (rare for personal loans)