Prepay the loan, or invest it

Five steps and two numbers: the interest a prepayment would save, and what the same money would come to at a return you choose. The second is an illustration of your assumption, not a projection, and nothing here recommends either side.

Step 1 of 5 — Before you start

You have a lump sum. It can go into the loan, or it can be invested.

A bonus, a maturity, a sale. The question that follows is always the same: put it against the loan, or invest it? Both answers are defensible, and the arguments people give for each are usually about feelings rather than figures.

This puts the two side by side over the same period, using your loan's real rate on one side and a return you choose on the other. The second one is an illustration of your assumption, not a projection — and this page will not tell you which side to pick.

Everything you type is worked out in this browser, and none of it goes anywhere unless you ask at the end for it to be kept. You do not need an account, and the result is the same either way. No investment, fund or lender is named anywhere in this tool.