Should I prepay loan if market returns are higher?
Compare post-tax and risk-adjusted returns versus loan cost, not headline numbers.
Calculator
Prepay Home Loan or Invest Calculator
Evaluate whether a one-time surplus is better used for immediate loan prepayment or invested for future growth under your assumptions.
Interest saved by prepay
₹10,41,633
Months saved by prepay
44 mo
Invested future value
₹12,85,130
Post-tax return assumption
9.90%
Prepayment may be financially better under these assumptions. Recheck with your actual risk tolerance, tax profile, and liquidity needs.
FAQs
Does emergency fund come before prepayment?
Yes, maintain safety buffer before aggressive prepayment.
Is this a financial advice tool?
No, this is an educational planning tool based on assumptions.
What if rates and returns both change?
Recalculate periodically with updated assumptions.