Best Strategy ?
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Optimization Target ?
Net Benefit vs Cash ?
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Total Interest (Best) ?
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Cash Purchase Wealth ?
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Ending Wealth Over Time ?
Chart Metric
Hover over the chart to inspect a period.
Scenario Comparison
Money in the currency on the Purchase tab, in future dollars. Each scenario is scored at the end of its own term.
Amortization Schedule
One row per repayment of the scenario picked below, in the currency on the Purchase tab.
What this assumes
- Financing keeps your cash invested. Every scenario and the cash purchase start from the same Available Cash. Whatever is not spent up front earns the Risk-Free Rate, and each repayment comes out of it.
- Spare cash compounds at the Risk-Free Rate once each repayment period, in every scenario and in the cash purchase alike.
- Each scenario is scored at the end of its own term against paying cash over the same time. Cash Purchase Wealth runs to the longest term.
- Loan rates are converted to the repayment period as the Rate Convention says: compound (effective, EAR) or simple division (nominal, APR).
- Origination fees are paid the way you choose (up front, added to the loan, or deducted from the advance); admin fees are charged on every repayment.
- A floating rate is run three times, at its minimum, middle and maximum. The chart shades that range; the tables use the middle, and the comparison adds the range.
- Amounts are in future dollars. With inflation on, the comparison adds an Inflation-Adj Net Benefit in today's money.
- No tax on the interest your cash earns, and no change in the price of what you buy.