Save vs. Borrow Calculator
Should you finance a purchase or save up for it? Compare the monthly loan payment and total interest against what the same money would earn if you saved it instead.
The most expensive way to buy something is on credit; the cheapest is to save up first. This compares the two head-to-head. Enter the price you want to reach, the loan rate a lender would charge, the term, and the rate you could earn by saving instead — then see the monthly payment, the total interest you would hand the lender, and how much that same monthly amount would grow if you saved it.
Financing this purchase means paying $527/month for 48 months — handing the lender $5,280 in interest on top of the price.
Save that same $527 a month at 5% instead and you would reach the $20,000 price in about 36 months — 12 months sooner than the loan ends, and with none of the $5,280 in interest.
Keep saving $527 for the full 48 months and you would have $27,978 — $7,978 more than the price. Run the numbers before you borrow, and never take on a payment you cannot comfortably cover.
Month-by-month loan schedule
| Month | Payment | Interest | Principal | Total paid | Balance |
|---|---|---|---|---|---|
| 1 | $526.68 | $200.00 | $326.68 | $526.68 | $19,673.32 |
| 2 | $526.68 | $196.73 | $329.94 | $1,053.35 | $19,343.38 |
| 3 | $526.68 | $193.43 | $333.24 | $1,580.03 | $19,010.14 |
| 4 | $526.68 | $190.10 | $336.58 | $2,106.71 | $18,673.56 |
| 5 | $526.68 | $186.74 | $339.94 | $2,633.38 | $18,333.62 |
| 6 | $526.68 | $183.34 | $343.34 | $3,160.06 | $17,990.28 |
| 7 | $526.68 | $179.90 | $346.77 | $3,686.74 | $17,643.51 |
| 8 | $526.68 | $176.44 | $350.24 | $4,213.41 | $17,293.26 |
| 9 | $526.68 | $172.93 | $353.74 | $4,740.09 | $16,939.52 |
| 10 | $526.68 | $169.40 | $357.28 | $5,266.77 | $16,582.24 |
| 11 | $526.68 | $165.82 | $360.85 | $5,793.44 | $16,221.38 |
| 12 | $526.68 | $162.21 | $364.46 | $6,320.12 | $15,856.92 |
| 13 | $526.68 | $158.57 | $368.11 | $6,846.80 | $15,488.81 |
| 14 | $526.68 | $154.89 | $371.79 | $7,373.47 | $15,117.03 |
| 15 | $526.68 | $151.17 | $375.51 | $7,900.15 | $14,741.52 |
| 16 | $526.68 | $147.42 | $379.26 | $8,426.83 | $14,362.26 |
| 17 | $526.68 | $143.62 | $383.05 | $8,953.50 | $13,979.20 |
| 18 | $526.68 | $139.79 | $386.88 | $9,480.18 | $13,592.32 |
| 19 | $526.68 | $135.92 | $390.75 | $10,006.86 | $13,201.57 |
| 20 | $526.68 | $132.02 | $394.66 | $10,533.53 | $12,806.90 |
| 21 | $526.68 | $128.07 | $398.61 | $11,060.21 | $12,408.30 |
| 22 | $526.68 | $124.08 | $402.59 | $11,586.89 | $12,005.70 |
| 23 | $526.68 | $120.06 | $406.62 | $12,113.56 | $11,599.08 |
| 24 | $526.68 | $115.99 | $410.69 | $12,640.24 | $11,188.40 |
| 25 | $526.68 | $111.88 | $414.79 | $13,166.92 | $10,773.60 |
| 26 | $526.68 | $107.74 | $418.94 | $13,693.59 | $10,354.66 |
| 27 | $526.68 | $103.55 | $423.13 | $14,220.27 | $9,931.53 |
| 28 | $526.68 | $99.32 | $427.36 | $14,746.95 | $9,504.17 |
| 29 | $526.68 | $95.04 | $431.63 | $15,273.62 | $9,072.54 |
| 30 | $526.68 | $90.73 | $435.95 | $15,800.30 | $8,636.59 |
| 31 | $526.68 | $86.37 | $440.31 | $16,326.98 | $8,196.28 |
| 32 | $526.68 | $81.96 | $444.71 | $16,853.65 | $7,751.56 |
| 33 | $526.68 | $77.52 | $449.16 | $17,380.33 | $7,302.40 |
| 34 | $526.68 | $73.02 | $453.65 | $17,907.01 | $6,848.75 |
| 35 | $526.68 | $68.49 | $458.19 | $18,433.68 | $6,390.56 |
| 36 | $526.68 | $63.91 | $462.77 | $18,960.36 | $5,927.79 |
| 37 | $526.68 | $59.28 | $467.40 | $19,487.04 | $5,460.39 |
| 38 | $526.68 | $54.60 | $472.07 | $20,013.71 | $4,988.32 |
| 39 | $526.68 | $49.88 | $476.79 | $20,540.39 | $4,511.52 |
| 40 | $526.68 | $45.12 | $481.56 | $21,067.07 | $4,029.96 |
| 41 | $526.68 | $40.30 | $486.38 | $21,593.75 | $3,543.58 |
| 42 | $526.68 | $35.44 | $491.24 | $22,120.42 | $3,052.34 |
| 43 | $526.68 | $30.52 | $496.15 | $22,647.10 | $2,556.19 |
| 44 | $526.68 | $25.56 | $501.11 | $23,173.78 | $2,055.07 |
| 45 | $526.68 | $20.55 | $506.13 | $23,700.45 | $1,548.95 |
| 46 | $526.68 | $15.49 | $511.19 | $24,227.13 | $1,037.76 |
| 47 | $526.68 | $10.38 | $516.30 | $24,753.81 | $521.46 |
| 48 | $526.68 | $5.21 | $521.46 | $25,280.48 | $0.00 |
Estimates only, for general information — not financial advice. Calculations run in your browser; nothing is stored.
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