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MBA Payback Calculator - Assetyogi

The document analyzes the costs and payback period of obtaining a 2-year MBA degree in India. It details that the total cost of the MBA including fees, lost salary, and interest on loans is 4.17 million rupees. The individual would take a 2 million rupee loan at 9% interest to be repaid over 5 years through monthly installments of 41,517 rupees. The payback period, or time to recover the investment through increased post-MBA salary, is calculated to be less than 5 years based on a 50,000 to 100,000 rupee monthly salary increase.

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кush Wαdhwα
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89 views

MBA Payback Calculator - Assetyogi

The document analyzes the costs and payback period of obtaining a 2-year MBA degree in India. It details that the total cost of the MBA including fees, lost salary, and interest on loans is 4.17 million rupees. The individual would take a 2 million rupee loan at 9% interest to be repaid over 5 years through monthly installments of 41,517 rupees. The payback period, or time to recover the investment through increased post-MBA salary, is calculated to be less than 5 years based on a 50,000 to 100,000 rupee monthly salary increase.

Uploaded by

кush Wαdhwα
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 20

MBA Payback By AssetYogi.

com

Salary Before MBA (p.m.) 50,000 Salary Post MBA (p.m.)


1 Year or 2 Year MBA 2 Rise in Salary (p.m.)
MBA Fee 2,000,000 Annual Increment
Salary Foregone 1,200,000
Returns on Lost Salary 120,000 Payback Period* (Years)
Loan Interest during MBA 360,000 *Cash Flows from Incremental Salary are
considered to calculate Payback Period
Loan Interest while paying 491,003
Total MBA Cost 4,171,003

Loan Inputs
Loan Payment Break-Up
Loan Amount (Rs.) 2,000,000
Interest Rate (% p.a.) 9.00%
Loan Tenure (Years) 5 491,003

(in Rs.)

Results
EMI 41,517 2,000,000
Total Interest Payable 491,003
Principal Amount
Total Payment 2,000,000
P r in cip al & In ter est R ep a y m en t (R s.)

(Principal + Interest) 2,491,003 Total Interest Payable Principal Amount

P r in cip a l O u tsta n d in g (R s.)


Loan Repayment Chart
600,000 1,800,000

1,600,000
500,000
1,400,000

400,000 1,200,000

1,000,000
300,000
800,000

200,000 600,000

400,000
100,000
200,000

- -
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Principal Pmt Interest Pmt Principal


(P) (I) Outstanding
Loan Repayment Schedule (Yearly)
(figures in Rupees)
Principal Pmt Interest Pmt Total Payment Principal Cumulative
Year
(P) (I) (P+I) Outstanding Interest
1 331,660 166,540 498,201 1,668,340 166,540
2 362,772 135,428 498,201 1,305,568 301,969
3 396,803 101,398 498,201 908,765 403,367
4 434,025 64,175 498,201 474,740 467,542
5 474,740 23,461 498,201 - 491,003
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Total 2,000,000 491,003 2,491,003

Loan Repayment Schedule (Monthly)


(figures in Rupees)
Principal Pmt Interest Pmt Total Payment Principal Cumulative
Month
(P) (I) (P+I) Outstanding Interest
1 26,517 15,000 41,517 1,973,483 15,000
2 26,716 14,801 41,517 1,946,768 29,801
3 26,916 14,601 41,517 1,919,852 44,402
4 27,118 14,399 41,517 1,892,734 58,801
5 27,321 14,196 41,517 1,865,413 72,996
6 27,526 13,991 41,517 1,837,887 86,987
7 27,733 13,784 41,517 1,810,154 100,771
8 27,941 13,576 41,517 1,782,213 114,347
9 28,150 13,367 41,517 1,754,063 127,714
10 28,361 13,155 41,517 1,725,702 140,869
11 28,574 12,943 41,517 1,697,128 153,812
12 28,788 12,728 41,517 1,668,340 166,540
13 29,004 12,513 41,517 1,639,336 179,053
14 29,222 12,295 41,517 1,610,114 191,348
15 29,441 12,076 41,517 1,580,673 203,424
16 29,662 11,855 41,517 1,551,012 215,279
17 29,884 11,633 41,517 1,521,127 226,912
18 30,108 11,408 41,517 1,491,019 238,320
19 30,334 11,183 41,517 1,460,685 249,503
20 30,562 10,955 41,517 1,430,124 260,458
21 30,791 10,726 41,517 1,399,333 271,184
22 31,022 10,495 41,517 1,368,311 281,679
23 31,254 10,262 41,517 1,337,057 291,941
24 31,489 10,028 41,517 1,305,568 301,969
25 31,725 9,792 41,517 1,273,843 311,761
26 31,963 9,554 41,517 1,241,880 321,315
27 32,203 9,314 41,517 1,209,677 330,629
28 32,444 9,073 41,517 1,177,233 339,701
29 32,687 8,829 41,517 1,144,546 348,530
30 32,933 8,584 41,517 1,111,613 357,115
31 33,180 8,337 41,517 1,078,434 365,452
32 33,428 8,088 41,517 1,045,005 373,540
33 33,679 7,838 41,517 1,011,326 381,377
34 33,932 7,585 41,517 977,394 388,962
35 34,186 7,330 41,517 943,208 396,293
36 34,443 7,074 41,517 908,765 403,367
37 34,701 6,816 41,517 874,064 410,183
38 34,961 6,555 41,517 839,103 416,738
39 35,223 6,293 41,517 803,880 423,031
40 35,488 6,029 41,517 768,392 429,061
41 35,754 5,763 41,517 732,638 434,823
42 36,022 5,495 41,517 696,616 440,318
43 36,292 5,225 41,517 660,324 445,543
44 36,564 4,952 41,517 623,760 450,495
45 36,839 4,678 41,517 586,922 455,173
46 37,115 4,402 41,517 549,807 459,575
47 37,393 4,124 41,517 512,414 463,699
48 37,674 3,843 41,517 474,740 467,542
49 37,956 3,561 41,517 436,784 471,103
50 38,241 3,276 41,517 398,543 474,378
51 38,528 2,989 41,517 360,015 477,368
52 38,817 2,700 41,517 321,199 480,068
53 39,108 2,409 41,517 282,091 482,477
54 39,401 2,116 41,517 242,690 484,592
55 39,697 1,820 41,517 202,993 486,413
56 39,994 1,522 41,517 162,999 487,935
57 40,294 1,222 41,517 122,705 489,157
58 40,596 920 41,517 82,109 490,078
59 40,901 616 41,517 41,208 490,694
60 41,208 309 41,517 - 491,003
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Total 2,000,000 491,003 2,491,003
By AssetYogi.com

90,000
40,000
10%

7
m Incremental Salary are
lculate Payback Period

Break-Up

1,003

Principal Amount
P r in cip a l O u tsta n d in g (R s.)

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

-
27 28 29 30
(figures in Rupees)
Cumulative Prepayments
Principal (Enter Below)
331,660
694,432
1,091,235
1,525,260
2,000,000
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(figures in Rupees)
Cumulative Prepayments
Principal (if any)
26,517
53,232
80,148
107,266
134,587
162,113
189,846
217,787
245,937
274,298
302,872
331,660
360,664
389,886
419,327
448,988
478,873
508,981
539,315
569,876
600,667
631,689
662,943
694,432
726,157
758,120
790,323
822,767
855,454
888,387
921,566
954,995
988,674
1,022,606
1,056,792
1,091,235
1,125,936
1,160,897
1,196,120
1,231,608
1,267,362
1,303,384
1,339,676
1,376,240
1,413,078
1,450,193
1,487,586
1,525,260
1,563,216
1,601,457
1,639,985
1,678,801
1,717,909
1,757,310
1,797,007
1,837,001
1,877,295
1,917,891
1,958,792
2,000,000
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