Home Loan Prepayment vs Investment Calculator
Compare the potential benefit of using surplus money to prepay your home loan versus investing the same amount.
Prepayment is modeled as an immediate lump-sum reduction of the loan while keeping the EMI unchanged, which can shorten the tenure. The investment scenario compounds the same lump sum at the expected annual return.
Prepayment vs Investment
See the estimated interest saved by prepayment and the potential future value of investing the same amount.
Current EMI
Loan Balance After Prepayment
Interest Saved by Prepayment
Investment Future Value
Investment Advantage Over Interest Saving
Investment future value minus estimated loan interest saving.
Tenure Without Prepayment
Tenure With Prepayment
Value Comparison
| Particular | Prepayment | Investment |
|---|---|---|
| Initial surplus amount | ||
| Loan interest saved | — | |
| Investment future value | — | |
| Loan tenure | ||
| Net comparison |
Investment Return Sensitivity
| Expected Return | Future Value | Less Prepayment Benefit | Difference |
|---|
Indicative calculation only. Investment returns are not guaranteed and may involve market risk, taxes and costs. Loan interest savings depend on lender rules, rate resets, prepayment charges and the actual repayment schedule. This calculator does not provide investment or tax advice.