The #1 Indian Homeowner Dilemma
Prepay Home Loan vs Invest in SIP Calculator
Should you put an extra ₹10,000/month towards prepaying your 8.5% Home Loan or invest it in a 12% Equity SIP?
Option A: Prepay 8.5% Loan
Guaranteed Savings
Interest Saved₹21,78,764
Finishes your 20-year home loan in 12.9 years (7 years earlier!).
Option B: Invest in 12% SIP
Wealth Maximizer
Accumulated Wealth Gain₹67,98,574
Builds an independent liquid portfolio of ₹91,98,574 over 20 years.
Mathematical Verdict
Investing in SIP delivers +₹46,19,810 more net financial value than prepaying!
Because equity returns (12%) exceed home loan interest rates (8.5%), the compounding spread creates a massive net wealth surplus over a 20-year horizon.