You have extra money each month. Compare using it to prepay your loan versus investing it — purely on the numbers.
This calculator compares two uses of the same extra monthly amount: using it to prepay your loan faster (which saves you future interest, effectively earning you a guaranteed 'return' equal to your loan's interest rate) versus investing it in the market at your expected return rate. Whichever produces the larger financial outcome over your loan's remaining tenure is shown as the better option.
The core trade-off is risk versus certainty: prepaying guarantees a return equal to your loan rate with zero risk, while investing offers potentially higher returns but with market risk and no guarantee — the math might favor investing, but your comfort with that risk matters too.
On average and over the long run, yes, if your assumed investment return consistently beats your loan rate. But markets don't return the same amount every year, so there's real risk your actual return falls short, especially over shorter periods.
No — for home loans specifically, Section 24 (interest) and Section 80C (principal) deductions under the old regime can effectively lower your real loan cost, which could change this comparison. Factor that in separately if it applies to you.
Many people split the difference — prepaying a portion while investing the rest — to get some guaranteed debt reduction along with some market exposure, without going all-in on either strategy.