If your investments can out-earn the loan rate, financing and investing can win. See the math.
A pay-cash-or-finance calculator compares paying cash for a purchase with financing it and investing the money, weighing the loan's interest cost against the return your cash could earn.
Financing costs interest, but keeping your cash invested can earn a return. If your expected investment return is higher than the loan rate, financing and investing can leave you ahead; if the loan rate is higher, paying cash wins. The calculator compares the interest paid with the growth earned over the term.
The numbers ignore risk and certainty. A guaranteed saving from paying cash is worth more than an uncertain investment return, and low-rate promotional financing changes the calculus. There's also value in being debt-free. Use the comparison as a starting point, then weigh your comfort with debt and market risk.
If your expected investment return beats the loan rate, financing and investing can win. If the loan rate is higher, paying cash is better.
Risk and taxes. Investment returns are uncertain, while paying cash saves interest for certain. Low-rate financing tilts toward investing.
Often yes, since there's no interest cost, so keeping your cash invested (or in savings) usually comes out ahead. Confirm there are no hidden fees.
See the exact formula and a worked example on our methodology page.