Prepay vs Invest Calculator
Assumptions:
- Loan Tenure and Interest Rate: The loan tenure and interest rate provided are assumed to remain constant throughout the loan period.
- Prepayment Fees: The prepayment fees are assumed to be a fixed percentage of the prepayment amount.
- Investment Return: The expected investment return is assumed to be constant over the investment period and may not reflect real market conditions.
- Surplus Amount: The surplus amount provided for prepayment and investment is assumed to be fully available for use and not subject to any other costs or constraints.
- Loan EMI Calculation: EMI calculations are based on the standard loan amortization formula, with no changes in EMI during the loan tenure.
- Hybrid Strategy: The hybrid strategy assumes a specific percentage of the surplus amount is allocated to loan prepayment, with the remainder invested.
- Tax Impact: This calculator does not account for tax deductions or any tax implications that may arise from prepayments, investments, or interest savings. Users should consult a tax advisor for accurate calculations.
Disclaimer:
This calculator is designed to provide an estimate for making financial decisions regarding loan prepayment and investment. The results are based on the inputs provided and simplified assumptions. Actual outcomes may vary depending on several factors, including changes in interest rates, investment returns, prepayment penalties, and tax laws. The calculator does not consider the impact of personal tax situations, market volatility, or unforeseen financial changes. Users are encouraged to seek professional financial advice before making any major financial decisions.