Opportunity Cost Calculator

Buy It or Invest It?

Every rupee you spend is a rupee that can't compound. See exactly what your purchase costs in future wealth — and what the same money would be worth if invested.

₹
1 yr10 years30 yrs
4% (FD)12% /yr20%

In 10 years, the same ₹1,00,000 is worth…

If You Buy

₹5,631

(resale value after 10yr)

Lost ₹94,369 to depreciation

If You Invest

₹3.1 L

at 12% annual return

+₹2.1 L growth

True Cost of Buying Your Purchase

₹3.0 L

= ₹3.1 L the money could have become − ₹5,631 you could resell it for

Investment grows

55.2×

vs purchase resale

Opportunity cost

₹2.1 L

foregone wealth

Value over 10 years

If you invest ₹1,00,000 today at 12%, it grows to ₹3.1 L in 10 years.
The Your Purchase, meanwhile, would have a resale value of roughly ₹5,631.
This isn't a reason to never buy — it's a lens to see the real cost of every decision.

Calculation Assumptions

Results can differ across apps when compounding or contribution timing assumptions change.

  • Investment growth compounds annually at the entered expected return rate for the full time horizon.
  • Depreciation is modeled as a constant annual percentage decline based on the selected category.
  • True cost is the wealth gap after the period: what the money would be worth invested, minus what the item could be resold for. Opportunity cost is the growth alone (future value minus price).
  • Taxes on investment gains and inflation are not modeled.

Reviewed October 2026

The opportunity cost of spending

Every rupee you spend is a rupee that can't compound. This calculator compares two paths for the same money: buy the item and watch it depreciate, or invest it and let it grow.

How the true cost is measured

Investment value = Price × (1 + return)^years
Resale value     = Price × (1 − depreciation)^years
True cost        = Investment value − Resale value

Example: ₹1,00,000 on a gadget that loses 25% a year, versus investing at 12% for 10 years. The investment grows to about ₹3.1 lakh; the gadget is worth about ₹5,600. The true cost of buying is the gap — roughly ₹3 lakh.

Frequently asked questions

Does this mean I should never buy things?

No — it's a lens, not a rule. Use it for big discretionary purchases so you decide knowing the long-term trade-off.

What depreciation rates are used?

Typical rates by category: electronics about 25% a year, vehicles 20%, furniture 10%, gold jewellery about 2% (making charges are lost), and experiences are treated as fully spent.

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