Calculator
EMI vs SIP
The classic question: prepay the loan or invest the extra in SIP? Run the math with your real numbers.
Your Scenario
₹
₹1 L₹5 Cr
1 yr30 yrs
%
1%20%
₹
₹1 K₹5 L
%
1%20%
Side-by-Side Comparison
Standard EMI
₹0
A: Prepay then Invest
Loan Cleared In—
Interest Paid—
Wealth at Horizon—
B: EMI + Parallel SIP
Loan Cleared In—
Interest Paid—
SIP Wealth—
Verdict
—
How This Is Calculated
We model two paths over the original loan tenure:
- Path A: Pay the standard EMI plus your extra monthly surplus toward loan principal. This shortens the loan. After the loan is cleared, the freed cash (EMI + extra) is invested in SIP for the remaining months.
- Path B: Pay only the standard EMI. The extra surplus is invested in SIP from day one, for the full tenure.
The verdict compares net wealth at the end of the original tenure. The crucial inputs: your after-tax loan rate vs your after-tax expected SIP return.
Rule of thumb: If expected SIP returns comfortably exceed the loan rate, parallel SIP usually wins. If they’re close, behavioural factors (peace-of-mind from being debt-free) often tilt the answer.
Need a Tiebreaker?
Numbers Don’t Decide Alone
Tax, liquidity, behaviour, and life-stage all factor in. Talk to us before making the call.