Home Loan Prepayment vs Investment Calculator
Lump sum into the loan or into the market? Interest saved versus expected corpus, with the guaranteed-return framing.
Formula
Prepayment earns exactly the loan rate, tax-free and risk-free — beating it requires equity-level risk. The behavioral middle path: prepay enough to cut tenure (keep EMI constant) while SIP-ing the rest. Floating-rate Indian home loans have zero prepayment penalty by RBI rule.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need home loan prepayment vs investment calculator results fast? Analysts, founders, traders and finance professionals use the Home Loan Prepayment vs Investment Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Home Loan Prepayment vs Investment Calculator
Lump sum into the loan or into the market? Interest saved versus expected corpus, with the guaranteed-return framing. Prepayment earns exactly the loan rate, tax-free and risk-free — beating it requires equity-level risk. The behavioral middle path: prepay enough to cut tenure (keep EMI constant) while SIP-ing the rest. Floating-rate Indian home loans have zero prepayment penalty by RBI rule. The governing relationship is prepay saves: EMI×n_old − EMI×n_new − lump; invest: lump×(1+r)^t after tax. The Home Loan Prepayment vs Investment Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Home Loan Prepayment vs Investment Calculator
- 1Enter Lump sum available (₹), Loan outstanding (₹), Loan rate (%), Tenure remaining, Expected investment return (%), Tax on investment gains (%) into the Home Loan Prepayment vs Investment Calculator.
- 2The result is computed automatically using prepay saves: EMI×n_old − EMI×n_new − lump; invest: lump×(1+r)^t after tax — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Home Loan Prepayment vs Investment Calculator?
- ✓Computes home loan prepayment vs investment calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Home Loan Prepayment vs Investment Calculator?+
Home Loan Prepayment vs Investment Calculator uses prepay saves: EMI×n_old − EMI×n_new − lump; invest: lump×(1+r)^t after tax. Prepayment earns exactly the loan rate, tax-free and risk-free — beating it requires equity-level risk. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Home Loan Prepayment vs Investment Calculator need?+
Enter Lump sum available (₹), Loan outstanding (₹), Loan rate (%), Tenure remaining, Expected investment return (%), Tax on investment gains (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Home Loan Prepayment vs Investment Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Home Loan Prepayment vs Investment Calculator?+
The behavioral middle path: prepay enough to cut tenure (keep EMI constant) while SIP-ing the rest. Floating-rate Indian home loans have zero prepayment penalty by RBI rule.
What is the Home Loan Prepayment vs Investment Calculator based on?+
The method follows authoritative sources: RBI — no foreclosure charges on floating-rate loans. The formula and references are shown on the page so you can verify and cite the result.
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