Per the Pashut Neto calculator, in 2026 on ₪100,000 a loan at 8% for 10 years costs about ₪45,600 in interest, while the same cash invested at an assumed 7% average annual return grows by about ₪101,000 — so the investment gain exceeds the loan cost by about ₪55,000 under these assumptions.
How is it calculated?
The calculator compares two paths for the same amount over the same term. The loan cost uses the Spitzer schedule (the standard Israeli fixed-payment amortization): a fixed monthly payment set by the rate and term, with total interest equal to all payments minus the principal. The investment gain uses compound interest: amount × (1 + annual return)^years, minus the original amount. The result is the numerical difference between total loan interest and the investment gain.
In the example: a ₪100,000 loan at 8% for 10 years means a monthly payment of about ₪1,213 and total interest of about ₪45,600. The same amount invested at an assumed 7% grows by about ₪101,000, so the investment gain exceeds the loan cost by about ₪55,000. This is arithmetic only: loan payments are certain while returns are not, markets are volatile, and leverage amplifies losses too. At a 9% loan versus a 3% return the result flips. Past returns do not guarantee future returns.
Frequently asked questions
should I take a loan or use my invested money
There is no single answer — it is a numbers question that depends on the gap between the loan rate and the return. In the example of an 8% loan versus a 7% return on ₪100,000 over 10 years, the investment gain exceeds the loan cost by about ₪55,000; at 9% versus 3% the result flips. Loan payments are certain, returns are not.
how much interest on a ₪100,000 loan at 8% for 10 years
On a Spitzer schedule (standard Israeli amortization): a monthly payment of about ₪1,213 and total interest of about ₪45,600 over the full term.
does investing beat loan interest
The calculator shows the numbers only: total loan interest versus the growth of the invested cash over the same term. Loan payments are fixed and certain, the return depends on the market, and leverage amplifies losses as well. Past returns do not guarantee future returns.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
