Loan Prepayment Calculator
See how much you save by prepaying your loan — vs investing that money.
Expected annual return if you invest instead of prepaying
Results
Interest saved by prepaying
₹9.89 L
Tenure reduction
4y 2m
New tenure
10y 10m
Prepay vs Invest
Prepay benefit
₹9.89 L
Interest saved (tax-adjusted)
Invest benefit
₹22.37 L
Gain at 12% return
Better optionLoan comparison
| Without prepayment | With prepayment | |
|---|---|---|
| Total interest | ₹23.18 L | ₹13.29 L |
| Tenure | 15 years | 10y 10m |
| Total paid | ₹53.18 L | ₹43.40 L |
Track your loan payoff progress in FlowTrack
Track your loan balances in FlowTrack and watch your liabilities shrink over time. Every prepayment you log brings you closer to debt freedom.
Try FlowTrack free →This is an estimate for planning purposes only and does not constitute financial advice.
Should you prepay your loan or invest?
Loan prepayment reduces your outstanding principal, which saves interest over the remaining tenure. For a home loan at 8.5%, even a ₹5 lakh prepayment in the early years can save several lakhs in interest and reduce your tenure by years. The earlier you prepay, the more you save.
However, if your investment returns exceed your loan interest rate (after adjusting for taxes), investing may be more beneficial. For example, if your home loan is at 8.5% and you can earn 12% in equity mutual funds, the math may favour investing — though this comes with higher risk.
This calculator shows you the exact interest saved by prepaying, the tenure reduction, and a side-by-side comparison of prepaying versus investing that lump sum. Use it to make an informed decision based on your specific numbers.