Answers to the most frequent questions about this calculator and the prepay-vs-invest decision.
It depends on three numbers: your loan interest rate, your expected investment return, and how long you plan to hold. As a rule of thumb, if your after-tax XIRR from investments is higher than your loan rate, investing is likely to win — but timing, loan closure, and the compounding of freed cash all matter. This calculator works out the full picture.
Indian large-cap equity mutual funds have historically delivered 11–14% XIRR over 15-year rolling periods. A conservative assumption for a diversified portfolio is 10–12%. Use 7–8% if you prefer debt/hybrid instruments.
To make the comparison fair. Both strategies start with the same lump sum and deploy the same monthly cash (eNACH + extra). Strategy Invest lets the eNACH service the loan and invests the rest; Strategy Prepay throws everything at the loan and invests once it's gone. This isolates the real decision — what's better to do with the same rupee?
This version does not model tax benefits (Section 24b interest deduction up to ₹2L, or 80C principal deduction up to ₹1.5L). These can shift the outcome for some income brackets, especially in the early years of the loan. We plan to add this in a future version.
No. This calculator is for educational purposes only. The figures are projections based on your inputs and model assumptions — not a guarantee. Consult a qualified financial advisor before making investment or prepayment decisions.