Prepay vs Invest
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This calculator is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment or loan decisions.

© 2026 Prepay vs Invest

Prepay vs Invest — Loan Simulator

Fair comparison: same total monthly outflow in both strategies.

Loan details

Your surplus cash

Monthly payments

eNACH ₹56,135auto-debited monthly=Bank EMI ₹46,272+Built-in prepay ₹9,863
Total monthly commitment →eNACH ₹56,135+Manual extra ₹50,000=₹1,06,135/mo
Treat the built-in prepayment out of the eNACH

Off. In Strategy Invest the full eNACH ₹56,135 (EMI + built-in prepay ₹9,863) is auto-debited to the loan — only the manual extra is invested. Flip it to invest the built-in prepay too.

While the loan is open, Strategy Invest:pays loan ₹56,135/moinvests ₹50,000/mo

Investment assumptions

Fair rule: both strategies commit ₹1,06,135/mo total. Strategy Invest: the bank auto-debits the eNACH (which already includes ₹9,863 built-in prepayment) → you invest the extra ₹50,000/mo + lump sum ₹6.8L. Strategy Prepay: throw everything (eNACH + extra + lump) at the loan → invest ₹1.1L/mo once the loan closes.

Strategy Invest at Yr 15

₹4.35Cr

loan done at Yr 6.2

Strategy Prepay at Yr 15

₹4.11Cr

loan done at Yr 2.3

Invest ahead by

₹23.3L

Invest wins at 13% XIRR

Invest wins

by ₹23.3L

Strategy Invest ends ₹23.3L richer over 15 years.

Why

  • Your expected return 13.0% beats your loan rate 7.3% by 5.8% — money kept in the market out-earns the interest you'd save by prepaying.
  • Investing from day 1 gives compounding a head start: by the time Prepay clears the loan (Yr 2.3), Invest already has ₹24.7L compounding.
  • At your horizon, Invest's net wealth is ₹4.35Cr vs Prepay's ₹4.11Cr.

Projection only — market returns aren't guaranteed, and taxes, prepayment penalties and home-loan tax benefits (24b/80C) aren't modelled. Not financial advice.

What's happening

Your eNACH of ₹56,135 already contains ₹9,863 built-in prepayment over the bank's required EMI of ₹46,272 — so your loan is already closing faster than schedule even in Strategy Invest.

Strategy Prepay additionally throws ₹50,000/mo + lump sum ₹6.8L at the loan, closing it at Yr 2.3 vs Strategy Invest's Yr 6.2. At the moment Prepay's loan closes, Strategy Invest already has ₹24.7L compounding — that's the head-start gap.