Decision Tool
Home Loan: Prepay vs Invest
Compare base loan with 2 prepayment strategies (extra EMIs, annual lumpsum). For each, see interest saved vs investing the same surplus at your expected return.
Inputs
Loan & Strategy
Reducing-balance EMI. Prepayments applied at year end.
₹
%
yrs
EMIs
₹
%
Monthly EMI
₹65.1K
₹65,087
Base Total Interest
₹81.21 L
20.0 yrs
With Extra EMIs · Interest
₹55.77 L
Tenure 14.4 yrs
With Lumpsum · Interest
₹48.23 L
Tenure 12.8 yrs
Extra EMIs (2/yr) vs Invest
Invest wins
Interest Saved
₹25.44 L
Invest Corpus
₹1.08 Cr
At ~₹1,30,174/yr surplus → invest yields ₹82.94 L more than prepaying.
Annual Lumpsum Prepay vs Invest
Invest wins
Interest Saved
₹32.98 L
Invest Corpus
₹1.67 Cr
At ~₹2,00,000/yr surplus → invest yields ₹1.34 Cr more than prepaying.
Base loan amortization
| Year | Principal Paid | Interest | Remaining |
|---|---|---|---|
| 1 | ₹1,49,267 | ₹6,31,774 | ₹73,50,733 |
| 2 | ₹1,62,461 | ₹6,18,580 | ₹71,88,272 |
| 3 | ₹1,76,821 | ₹6,04,220 | ₹70,11,451 |
| 4 | ₹1,92,451 | ₹5,88,590 | ₹68,19,000 |
| 5 | ₹2,09,461 | ₹5,71,580 | ₹66,09,539 |
| 6 | ₹2,27,976 | ₹5,53,065 | ₹63,81,563 |
| 7 | ₹2,48,127 | ₹5,32,914 | ₹61,33,436 |
| 8 | ₹2,70,059 | ₹5,10,982 | ₹58,63,377 |
| 9 | ₹2,93,930 | ₹4,87,111 | ₹55,69,447 |
| 10 | ₹3,19,910 | ₹4,61,130 | ₹52,49,537 |
| 11 | ₹3,48,188 | ₹4,32,853 | ₹49,01,349 |
| 12 | ₹3,78,964 | ₹4,02,077 | ₹45,22,385 |
| 13 | ₹4,12,461 | ₹3,68,580 | ₹41,09,923 |
| 14 | ₹4,48,919 | ₹3,32,122 | ₹36,61,004 |
| 15 | ₹4,88,599 | ₹2,92,441 | ₹31,72,405 |
| 16 | ₹5,31,787 | ₹2,49,254 | ₹26,40,618 |
| 17 | ₹5,78,792 | ₹2,02,249 | ₹20,61,825 |
| 18 | ₹6,29,952 | ₹1,51,089 | ₹14,31,873 |
| 19 | ₹6,85,634 | ₹95,406 | ₹7,46,238 |
| 20 | ₹7,46,238 | ₹34,803 | ₹0 |