Loan now or save up

Big purchase: borrow today or save up — comparison with inflation

Parameters

Purchase price today, UAH

Loan rate, %/yr

Loan term, mo

You can save/mo, UAH

Savings yield, %/yr

Price growth, %/yr

Comparison

Loan: total cost126,891 ₴ (+26,891 loan overpayment)

Saving: purchase cost114,974 ₴ · 21 months to save

Verdict: Under these terms saving is cheaper — the loan overpayment exceeds the price growth.

Simplified model: loan is annuity, savings are monthly deposits at a rate, item price grows %/yr. Not counted: loan insurance, deposit income tax, risk of abandoning the savings plan.

About Loan vs savings

Loan vs savings — borrow now or save up — what's cheaper with inflation. Finance: debt payoff, loan vs savings, bank fees, splitter, child costs, cashback, life insurance, terms. Use our tools without registration or installing software. All calculations happen in your browser — your data is never sent to a server.