$830/moleft to save during the loan
| Keep my car | Buy the car |
|---|
| Monthly savings | $1,500 | $830 |
|---|
| Upfront | $0 | $10,000 |
|---|
| Estimated FI age | 48 | 51 |
|---|
About 3 years later
FI = investments could cover spending. Estimate, not a guarantee.
No signup. Nothing saved to your account.
Assumptions & math
What you pay
- Financed
- $20,000
- Loan payment /mo
- $470
- Extra running costs /mo
- $200
- Total interest over the loan
- $2,546
- Left to save after the loan*
- $1,300/mo
*In today's money, if your income and spending stay the same. Extra running costs continue after the loan.
Payment = principal × monthly rate ÷ (1 − (1 + monthly rate)−months). At 0% APR, principal ÷ months.
What shapes the curve
- Annual return, before inflation
- 7%
- Annual inflation
- 3%
- Withdrawal rate
- 4%
Your savings and investment growth compound. The down payment leaves the portfolio now; payments reduce new savings. The car itself doesn't count toward FI.
The FI target is yearly spending divided by the withdrawal rate. A 4% rate means 25 times yearly spending. FI ages use yearly steps.
Quick comparison, not a full retirement plan. Take-home pay and spending rise with inflation; all cash and investments use one fixed return. No investment taxes, market volatility, future car replacements, resale proceeds or other life events. Current car costs stay in your base spending. This estimates when you first cross a target, not whether a retirement lasts.