Should you prepay your loan or invest instead?
Prepaying guarantees a return equal to your loan rate. Investing might beat that — or might not. See the actual numbers, including what you'd give up in tax deduction if you're claiming one.
Enter your loan details and available lump sum to see which wins.
Questions people actually ask
- Why isn't this just "compare the two interest rates"?
- Because prepaying doesn't just save interest — it can cost you a tax deduction you were claiming on that interest (Section 24(b), old regime only), and it reduces the loan tenure rather than the EMI, which changes exactly how much interest is actually avoided. All of that is netted out here.
- Is a guaranteed 8.5% loan-rate saving 'better' than an uncertain 12% market return?
- That's a risk question this calculator deliberately doesn't answer for you — it shows you the numbers side by side, including the exact breakeven return rate, but whether you value the certainty of debt reduction over a higher expected (but variable) market return is a personal risk-tolerance call.