Should you pay cash — or finance and put that money to work? This tool protects your emergency fund first, then models what happens to the rest.
Vehicle & loan
Vehicle details
Vehicle price $35,000
Amount financed $30,000
Down payment: $5,000 · Set to $0 to model a full cash purchase.
Primary loan term
Compare with accelerated payoff?
Show a third column with an aggressive early-payoff scenario.
Loan interest rate 6.8%
Best (excellent credit, new)~4.5%
National avg (new)~6.8%
National avg (used)~11.5%
Subprime15–20%
Your financial picture
Cash & liquid savings $40,000
Total checking, savings, and money market balances available today.
Monthly expenses (excl. mortgage) $5,000
Used to calculate your 6-month emergency fund reserve. Food, utilities, insurance, etc. — not mortgage or debt payments.
Monthly take-home income $10,000
Monthly debt payments $500
Mortgage, student loans, etc. — everything except this new vehicle payment.
Risk tolerance
Expected annual return 8.0%
Tax assumption (fixed)
15% long-term capital gains
Standard rate for most investors.
Analysis — 4-year loan
How your savings are allocated
6-month emergency reserve
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Available to invest (if financing)
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Available after cash purchase
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Financial health check
Emergency fund after purchase
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Monthly cash flow (with payment)
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Debt-to-income ratio
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Caution
Pay cash Better option
You pay today—
Monthly paymentNone
Interest paid$0
Cash left after purchase—
Investable after emergency fund—
That amount grows to—
Investment gains over loan term—
Finance + invest Better option
Down payment today—
Monthly payment—
Total interest paid—
Investable (savings minus EF)—
That amount grows to—
Investment gains over loan term—
Net advantage vs. cash—
Accelerated payoff 2 yr
Down payment today—
Monthly payment—
Total interest paid—
Investable (savings minus EF)—
That amount grows to—
Investment gains over loan term—
Net advantage vs. cash—
With $0 financed, you're paying full cash — there's no loan scenario to compare. Check the financial health section above to confirm the purchase doesn't leave your savings too thin.
Break-even investment return
The return rate at which financing + investing equals paying cash
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Calculating…
Investment gains vs. interest cost — by strategy
Compares what your invested money earns against what you pay in loan interest, over the loan term. The wider the green bar vs. the red bar, the better financing looks.
Investment gains (after tax)
Interest paid on loan
How the emergency fund works: The calculator reserves 6 months of your monthly expenses as untouchable. In the finance scenario, the remaining savings above that reserve are invested. In the cash scenario, the vehicle purchase comes out first, then whatever remains above the 6-month reserve is invested.
Break-even rate: The investment return at which financing and investing exactly ties paying cash. If you expect to earn above this rate, financing is mathematically better. Below it, cash wins. DTI guideline: Keep total monthly debt payments below 36% of take-home income. Returns shown after 15% long-term capital gains tax. Past performance doesn't guarantee future results. Speak with your Cadence advisor before making any decisions.
Cadence Wealth Partners, LLC · Concord, NC This tool is for planning purposes only and does not constitute financial advice. Please review with your advisor.