Prepay vs Invest Planner
Should spare money clear your loan or get invested? See four strategies compared over your loan term, and the return investing must beat to win. Private to your browser.
A planner for figures you enter. Estimates, not advice. Stays in your browser.
The loan rate and your after-tax return are close — splitting captures some guaranteed saving and some growth, and keeps you flexible.
₹25,357
on the original term
10.3%
invest above this to beat prepaying (after tax)
10.5%
clears the break-even
Invest 100%
highest net worth at loan-end
Your loan & surplus
Four ways to use the money
| Metric | Prepay 100% | Invest 100%Highest net worth | Prepay 50% · Invest 50% | Increase EMI |
|---|---|---|---|---|
| Net worth at loan-end | ₹84.66 L | ₹95.80 L | ₹88.60 L | ₹88.55 L |
| Loan cleared in | 5.3 yrs | 15.0 yrs | 8.1 yrs | 7.0 yrs |
| Interest paid | ₹5.10 L | ₹20.64 L | ₹9.19 L | ₹8.74 L |
| Advantage vs worst | ₹0 | ₹11.14 L | ₹3.94 L | ₹3.89 L |
Same money, four allocations, compared at the end of your original loan term. Investment values are after tax; returns aren't guaranteed.
What actually decides this
- Prepaying earns a guaranteed, tax-free 9% (the loan rate you avoid).
- Investing must beat 10.3% after tax just to tie — your assumption is 10.5%.
- Guaranteed saving vs uncertain market return — and prepaying locks the money away, investing keeps it liquid.
- None of this comes before an emergency fund.
Start investing in mutual funds
Open a free account with ICICI Prudential AMC and start an SIP online. ICICI Prudential Mutual Fund, at no extra cost to you.
If you lean toward investing, a low-cost index or equity fund is the usual vehicle.
Not advice. An estimate from the loan, surplus and rates you enter — investment returns aren't guaranteed and are taxed, while prepaying is a guaranteed saving but less liquid. Your data stays in this browser.
Start investing in mutual funds
Open a free account with ICICI Prudential AMC and start an SIP online. · ICICI Prudential Mutual Fund, at no extra cost to you.