About This Tool
This calculator compares loan prepayment vs mutual fund investment when you have a monthly surplus — using loan EMI math and compounded MF growth.
Your inputs
Results
Interest Saved (Prepay)
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MF Corpus
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Book a Wealth Session →Frequently Asked Questions
Is it better to prepay a home loan or invest in mutual funds?
Depends on after-tax loan rate vs expected after-tax investment return and risk tolerance.
How does tax on mutual fund gains affect the comparison?
Equity LTCG and slab taxation on debt change net outcomes — model post-tax where possible.
What CAGR should I assume for equity mutual funds?
Use conservative long-term assumptions (10–12%) for planning; stress-test lower.
Does home loan tax deduction change the calculus?
Yes — effective borrowing cost drops with Section 24(b) benefit.
At what loan interest rate does prepayment always win?
When after-tax loan cost exceeds expected after-tax return with high confidence.