Finance
Loan Prepay vs Invest Calculator
The single most-asked question in personal finance, answered numerically. We compare the interest you'd save by prepaying against the after-tax corpus you'd build by investing — over your chosen horizon — and tell you which one wins, by how much.
Verdict
By ₹1,05,580 over 10 years.
Interest saved (prepay)
₹2,73,473
Loan ≈ 9% effective
Investment after-tax gain
₹3,79,053
Invest ≈ 10.8% effective
Quick rule of thumb: if your loan rate (post-tax-deduction) is higher than your expected post-tax investment return, prepay. Otherwise, invest.
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Frequently asked
- Why does the verdict change with horizon?
- Investments compound, while interest savings are roughly linear. Longer horizons usually favour investing — provided your post-tax return exceeds your loan rate.
- Does this consider tax deductions on home loans?
- It doesn't auto-apply 80C/24(b) deductions. To approximate, lower your loan rate by your slab × deduction-eligible portion of interest.
Try Prepayment Calculator next →
Prepayment Calculator