Pay a little extra. Save a lot.
See exactly how much interest and how many EMIs you can save by topping up your monthly payment.
This planner works on your outstanding balance with the same EMI and an extra monthly payment.
Jump to SIP vs Prepayment comparisonInterest saved
EMIs saved
≈ 4y 5m earlier
New tenure
Was 20y · now 15y 7m
Worth it?
Paying an extra ₹5.0 K/month saves you ₹13.89 L in interest over the loan.
Time freed up
You finish your loan 4.4 years earlier.
The early-prepayment edge
The same EMI plus extra payment reduces the principal balance faster and cuts future interest significantly.
Tip
Becoming debt-free earlier improves financial flexibility and peace of mind.
Check your bank's prepayment rules - floating-rate home loans often allow extra payments without penalty.
This shows whether the extra ₹₹5.0 K per month is better used to repay the loan faster or invested in SIPs.
Loan details
Outstanding balance: ₹50.00 L
EMI used in comparison: ₹43.4 K
SIP calculated for: 20y
Comparison details
Extra monthly amount: ₹5.0 K
Prepay payoff in: 15y 7m
Post-payoff investment window: 4y 5m
SIP corpus
Market-linked returns
Prepay first, invest later
Guaranteed savings + investing later
Additional wealth created
What's included in "Prepay first, invest later"?
Interest saved through early closure + Future value of freed EMI invested
Two-Phase Strategy Timeline
At 12% expected SIP return versus 8.5% loan rate, this comparison shows the likely outcome for the same monthly surplus.
SIP returns generally need to exceed approximately 9.5% to outperform prepayment over long periods.
Why this result?
Expected SIP returns are higher than your loan interest rate, so long-term compounding creates higher projected wealth.
When you make an extra payment beyond your EMI, the entire extra amount goes towards reducing the principal - which means less interest is charged in every subsequent month.
This calculator models a loan with the same EMI and an extra monthly payment, so the remaining tenure shortens while the EMI stays fixed.
Rule of thumb: if your loan rate is higher than the expected SIP return, prepayment is the more certain choice.