Loan versus SWP investment comparison.
Compare a fixed loan EMI with systematic withdrawals from an investment corpus under explicit return assumptions.
Loan versus SWP investment comparison inputs
This is a deterministic scenario, not an arbitrage or an interest-free loan. Mutual-fund returns can be negative and withdrawals can deplete capital. It excludes tax, exit loads, insurance, market sequencing, loan fees and changes in rates.
Method: The loan uses a fixed-rate amortization schedule while the investment corpus grows monthly at the selected constant rate before each withdrawal.
Inputs used: Currency = INR; Loan amount = 3,000,000; Annual loan rate = 8 %; Loan term = 240 months; Starting investment corpus = 3,000,000; Annual investment return assumption = 12 %; Monthly SWP withdrawal = 25,000
Assumptions: The result uses the values, units and options shown in the input snapshot.
Scope and warnings: This is a deterministic scenario, not an arbitrage or an interest-free loan. Mutual-fund returns can be negative and withdrawals can deplete capital. It excludes tax, exit loads, insurance, market sequencing, loan fees and changes in rates. Rounding and excluded real-world terms can make an external result differ.
How this loan versus swp investment comparison works
The loan uses a fixed-rate amortization schedule while the investment corpus grows monthly at the selected constant rate before each withdrawal.
A worked example
A higher assumed investment return than loan rate does not ensure a positive ending corpus because withdrawals, tax and market timing matter.
Is this an interest-free home-loan strategy?
No. Investment returns are uncertain and can be negative. This is an educational comparison, not investment, lending or tax advice.
Calculations run on your device. Review your results before exporting or sharing them.
Stress-test the withdrawal plan
The page compares a fixed loan schedule with a constant-return investment withdrawal model.
It is not an arbitrage or interest-free-loan claim.
Published by ToolMitra — methods and editorial approach.