Prepay Loan vs Invest Comparator
See whether extra cash is better used to prepay your loan or invest it instead.
Interest saved (prepay)
₹16,03,691
Investment gain
₹38,06,381
Investing instead comes out ₹22,02,690 ahead — prepayment saves ₹16,03,691 in interest, while investing at 12% could grow to a gain of ₹38,06,381.
How this calculator works
When you have extra cash, should you pay down your loan faster or invest it? This calculator compares the guaranteed interest you'd save by prepaying against the expected gain from investing the same amount for the remaining loan tenure.
Worked example: with ₹5,00,000 extra cash against a ₹50,00,000 loan at 8.5%, prepaying in month 12 saves about ₹16 lakh in interest — but investing that same amount at an expected 12% return for the remaining 19 years could grow to a gain of roughly ₹38 lakh, making investing the stronger choice here purely on expected value (though prepayment remains the risk-free option).