Home loan + SIP calculator (India)
Pay the bank EMI as usual and run a parallel equity SIP so the corpus may offset interest (or total paid) by loan maturity. Educational planning tool — the loan is not literally interest-free.
What you can explore
- Loan amount, rate, and tenure → EMI schedule
- Parallel SIP sized to offset interest or a more aggressive gains target
- Assumed SIP return and year-by-year comparison
How to read the result
You still pay every EMI to the bank. The SIP is a separate investment. Charts compare loan interest paid vs SIP corpus/gains under your assumptions. Markets and taxes can change the outcome.
FAQ
Is the home loan actually interest-free?
No. You still pay the bank EMI in full. A parallel equity SIP aims to grow a corpus (or gains) that can offset the interest you paid — pre-tax and illustrative. This does not replace EMI.
Offset interest vs Aggressive — what is the difference?
Offset interest sizes the SIP so its corpus ≈ total interest paid. Aggressive sizes it so SIP returns (corpus − invested) ≈ interest paid — a larger monthly SIP, leaving invested capital plus a gains buffer equal to interest.
What return should I assume?
Long-horizon India equity planning often uses ~10–12%. It is not a promise. Stress-test lower returns; equity SIPs can underperform.
Should I prepay the loan instead?
That depends on loan rate, tax benefits, emergency buffer, and risk tolerance. This tool only illustrates a parallel-SIP scenario — not a recommendation to invest or prepay.
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