Loan Prepayment vs Investment
Whether a surplus is better used to prepay or to invest.
Loan Prepayment vs Investment
Whether a surplus is better used to prepay or to invest.
- Better use of the surplus
- Invest
- Interest saved by prepaying
- ₹13.21 lakh
- Post-tax investment gain
- ₹19.57 lakh
- Difference
- ₹6.36 lakh
How is this calculated?
Formula: Interest avoided by prepaying is compared with the post-tax return the same money could earn if invested over the same horizon.
- Prepaying gives a certain, guaranteed saving. Investment returns are uncertain — weigh the comfort of being debt-free too.
Your entries are user inputs; rates and returns you cannot control are assumptions. Results are illustrative, not a statutory computation.
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How this calculator works
Interest avoided by prepaying is compared with the post-tax return the same money could earn if invested over the same horizon.
Assumptions
- Prepaying gives a certain, guaranteed saving. Investment returns are uncertain — weigh the comfort of being debt-free too.
Statutory limits used here reflect FY 2025-26 (AY 2026-27). Results are illustrative and do not constitute tax, legal or investment advice. Speak to a Bluman Chartered Accountant before acting on them.
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