Opportunity-cost · calculator
What your money could be doing instead.
Compare your current allocation against senior debt targeting 11–12.5% IRR. Post-tax, assumption-transparent, scenario-tested. Illustrative only — returns are not guaranteed.
Your money today
Monthly investable surplus
₹25,000
Money you could invest monthly after all expenses. Not rent or EMI — only what's genuinely free.
Existing FD/RD monthly contribution
₹15,000
Idle savings-account balance
₹2 L
Emergency-fund buffer (carved out before investing)
Monthly rent
₹35,000
Rent savings %
10%
0%negotiation 5–10%downsize 15–25%30%
What could you realistically save by renegotiating at renewal or moving slightly cheaper? Most renters achieve 5–10% through negotiation alone.
Investment horizon
5 yr
Underlying deals are typically 24–36 months; longer horizons assume reinvestment at similar rates (reinvestment risk).
Tax bracket (new regime, FY 2026-27)
Interest from debt investments and FDs is taxed at your income-tax slab rate.
Assumptions · editable
Conservative IRR
% p.a.
Target IRR
% p.a.
Upside IRR
% p.a.
Bank FD rate
% p.a.
SBI 2–3 yr retail FD, June 2026
Savings account rate
% p.a.
SBI standard savings rate, June 2026
Equity index assumption
% p.a.
Long-run Nifty 50 TRI approximation; highly variable
Rates as of June 2026. RBI repo rate: 5.25%. All defaults editable — change anything you disagree with.
Potential additional wealth over 5 years · post-tax
Conservative · 9.0%
₹5.39 L
₹5,38,782
Target · 11.0%
₹6.7 L
₹6,69,996
Upside · 12.5%
₹7.73 L
₹7,72,538
Senior debt returns are targets, not guarantees. Investments carry credit risk (borrowers may default), liquidity risk (early exit may not be possible), and reinvestment risk (future deals may offer lower rates). Past performance does not predict future results. FD and savings figures use current bank rates which change over time. Tax treatment is simplified and depends on your situation — consult a tax advisor. This is an illustration, not investment advice.
Component breakdown
Surplus deployment
+₹2.56 L
If your surplus compounds in senior debt instead of sitting in savings.
Savings path: ₹15.7 L
Senior debt (Target): ₹18.2 L
₹25,000/mo × 60 months · post-tax @ 7.70%
FD reallocation
+₹86,906
FD vs senior debt — the spread on what you already invest.
FD path: ₹10.1 L
Senior debt (Target): ₹10.9 L
₹15,000/mo · FD @ 4.48% vs Senior @ 7.70%
Idle cash
+₹71,683
Investable idle balance: ₹2 L (after ₹0 emergency buffer).
Savings path: ₹2.18 L
Senior debt (Target): ₹2.9 L
₹2 L lump · post-tax @ 7.70% × 5 yr
Rent optimization · ₹3,500/mo redirected
+₹2.55 L
Assumes you successfully reduce rent and consistently invest the full difference every month. Counts only the achievable saving — never your whole rent.
Saving: ₹3,500/mo
Senior debt (Target): ₹2.55 L
₹35,000 × 10% saving compounded post-tax
Wealth trajectory · monthly surplus only
Equity line is shown dashed to indicate high volatility — equity returns can be negative in any given year.
Comparison · the honest table
| Vehicle | Post-tax return (30% slab) | Liquidity | Risk |
|---|---|---|---|
| Savings account | 1.75% | Instant | DICGC-insured up to ₹5L per bank |
| Bank FD | 4.48% | Premature withdrawal with penalty | DICGC-insured up to ₹5L per bank |
| Senior debt (Target) | 7.70% | Periodic windows · bilateral spot-delivery | Credit and liquidity risk; returns not guaranteed |
| Equity index funds | 12.00% | T+2 settlement (open-ended) | Market risk; can be negative in any given year |
Equity returns shown gross of LTCG; calculator applies a simplified 12.5% LTCG above ₹1.25L gains when computing the chart.
Illustrative only. Tax treatment simplified. Not investment advice.