PREPAYMENT VS INVESTING

Should you prepay your home loan or invest the extra money?

Use the same planned cash and the same original mortgage payoff date to compare both paths fairly. The result shows the modeled investment return at which the paths finish approximately equal.

Break-even returnEqual cash flowCommon horizonNo investment recommendation

Your financial inputs stay in this browser by default.Mortgage facts can be saved locally for this Decision Centre only. Investment-return assumptions, charges and comparison results are not stored in the shared mortgage profile.

YOUR ASSUMPTIONS

Compare the two paths

1. Mortgage / home-loan details

Use the balance, rate and remaining term that describe the loan today.

Outstanding home loan balance

₹

Current annual interest rate

Remaining loan tenure - years Additional months Scheduled repayment frequencyNo country silently preselects a different repayment frequency.

Use my current regular repaymentOtherwise Carrowmont uses the modeled repayment from the balance, rate and remaining term.Current regular repayment

₹

2. How is the extra money available?

Choose one V1 mode. Switching modes keeps the common mortgage details.

Lump-sum amount

₹

Apply at scheduled repayment #Must be within the baseline repayment schedule.

Extra-money frequencyFirst extra event / start periodCustom interval - months

3. Return and charge assumptions

The investment return is your assumption. Carrowmont does not prefill a market return or calculate local tax rules.

Assumed effective annual investment return after fees/tax you choose to reflect

Leave blank to calculate the break-even return without choosing a market-return assumption. Prepayment / foreclosure charge

₹

This is paid in addition to the extra-money amount and modeled on the first prepayment event. Enter the amount from your lender terms if applicable.

BREAK-EVEN INVESTMENT RETURN—

Enter a valid extra-money plan to calculate the threshold.

At your assumed returnEnter a return

Interest avoided by prepayment—

Prepay payoff—

Time saved to payoff—

Common horizon—

Entered prepayment charge—

MODELED ENDING VALUES

Enter an assumed investment return to compare the ending values at the common horizon.

Prepay path ending net value—

Invest path ending value—

Difference between paths—

Different kinds of uncertainty

Mortgage interest avoided is comparatively predictable once the loan terms and charges are correct. Investment returns are uncertain and can be lower, higher or negative.

COMMON-HORIZON COMPARISON

See where the same planned cash ends up.

The table is the accessible source of truth; the simple bars are only a visual companion and never require hover.

Path	Mortgage behavior	Extra cash behavior	Ending modeled value
Prepay	Extra cash reduces principal; the mortgage may finish early.	Freed scheduled cash and continuing planned extra cash are invested after payoff.	Enter return
Invest	Original mortgage schedule continues.	The same extra cash is invested on its planned dates.	Enter return

Prepay path

Enter an assumed return

Modeled value—

Invest path

Enter an assumed return

Modeled value—

HOW THIS COMPARISON WORKS

Equal cash flow. One original mortgage horizon.

The comparison avoids giving the prepayment path a hidden advantage simply because the loan finishes earlier.

Fair-comparison sequence

Build the original mortgage schedule from the entered balance, rate, term and repayment cadence.
Apply the chosen lump sum or recurring extra to principal in the Prepay path.
After early payoff, redirect scheduled payments that would otherwise have continued — plus any continuing recurring extra money — into the Prepay-path investment account.
In the Invest path, keep the original mortgage schedule and invest the same planned extra cash instead.
Compare both paths at the original scheduled mortgage payoff date and solve the effective annual return where they are approximately equal.

CONTINUE THE MORTGAGE JOURNEY

Keep the next decision separate.

Mortgage / Home Loan PayoffExplore how extra principal changes interest and time to payoff.Mortgage Decision CentreReturn to the four mortgage decisions and see what is live or planned next.

FAQ

Questions about prepaying versus investing

Why is the break-even return the main result?

It gives you a transparent threshold under the assumptions you entered without Carrowmont pretending to know future market returns.

Why does the Prepay option start investing after the mortgage is cleared?

Because the regular payment would otherwise have continued until the original payoff date. Redirecting that freed-up cash keeps the same planned cash flow for both options until that date.

Does Carrowmont include tax or investment fees?

Not automatically. If you want those effects reflected, use an effective annual investment return that already reflects the fees or tax assumptions you choose to model.

Should I use all spare cash for either prepayment or investing?

Not necessarily. Liquidity, emergency reserves and high-cost debt can matter before deciding how much cash is truly available. This tool is educational and does not perform a suitability assessment.