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Car Loan vs Cash Opportunity Cost

Analyze whether it's better to buy a car with cash or finance it based on interest rates and investment returns.

10k KRW
%
mo
%

Recommended purchase method

ν• λΆ€ 이용 ꢌμž₯

πŸ’‘ Investing your cash beats the loan interest by 161 (10k KRW).

Total loan interest
34810k KRW
Expected investment gain
50910k KRW
Net advantage
16110k KRW

How it works

Financing means paying interest, but it frees up cash to invest elsewhere. This compares total loan interest against the expected return from investing that cash over the same period.

FAQ

Q. What return rate should I assume?

A. Use 3–4% for savings deposits, or your personal target return for stocks/funds β€” but remember investing carries principal risk.

Q. Is the loan payment calculation accurate?

A. It uses the standard amortizing-loan formula, matching real installment interest closely.

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