AI-Powered Calculator to Decide: Prepay Your Home Loan or Invest?
Every homeowner with a loan faces this critical financial dilemma:
"I have ₹50,000 surplus every month. Should I prepay my home loan or invest it?"
This decision is complex and involves multiple factors:
- Interest saved from prepayment vs potential investment returns
- Tax benefits (80C, 24b deductions) on both sides
- Loan stage (early vs late) and remaining tenure
- Emergency fund requirements and liquidity needs
- Risk tolerance and investment horizon
- Opportunity cost of locking money in loan prepayment
Most people make this decision based on gut feeling or generic advice. Home Loan Optimizer provides data-driven, personalized recommendations using AI-powered analysis.
- Auto-calculated Outstanding Principal - Based on loan start date, EMI, and interest rate
- Multiple Prepayment Strategies - Monthly extra payments, yearly bonuses, lumpsum amounts
- Interest Savings Calculator - See exactly how much interest you'll save
- Tenure Reduction - Know how many months/years you'll become debt-free earlier
- Optimal Strategy Analysis - AI suggests the best mix of prepayment vs investment
- 7+ Factor Analysis: Emergency fund, loan stage, interest differential, risk tolerance, liquidity, tax optimization, financial health
- Confidence Scoring - Know how reliable the recommendations are
- Personalized Action Items - Clear next steps based on your situation
- 6 Investment Scenarios: PPF, ELSS, Mutual Funds, FD, Stocks, Bonds
- Side-by-side Analysis - Compare net worth projections
- Tax-adjusted Returns - All calculations include applicable taxes
- Risk vs Return - Understand tradeoffs
- 4 Key Metrics Cards: Net Worth, Loan Progress, Interest Saved, Time Saved
- Animated Count-up - Smooth transitions
- Responsive Design - Works on all devices
- Indian Number Format - ₹2,35,00,000 (2 Crores 35 Lakhs)
- Tax Benefits - Section 80C + 24(b) deductions
- Realistic Investment Options - Based on Indian market
- 100% Client-Side - No data sent to servers
- No Registration - Use immediately
- Open Source - Transparent code
- Loan start date, original amount, tenure
- Current EMI and interest rate
- Prepayment penalty (if any)
- Monthly extra payments
- Yearly prepayments
- Lumpsum amounts
- Monthly surplus for investment
Choose from PPF, ELSS, Mutual Funds, FD, Stocks, or Bonds
Click "View Your Optimal Strategy" to see personalized analysis
Compare net worth, interest savings, and tax benefits
- Frontend: React 18.3 + TypeScript 5.4
- Build Tool: Vite 5.x
- Styling: CSS3 with CSS Variables
- Charts: Recharts 2.12
- Date Handling: date-fns 3.0
- Deployment: GitHub Pages
- Analytics: Google Analytics 4
# Clone the repository
git clone https://github.com/riteshkawadkar/home-loan-optimizer.git
# Navigate to project directory
cd home-loan-optimizer
# Install dependencies
npm install
# Start development server
npm run dev
# Open http://localhost:5173npm run build
npm run preview- Loan: ₹50L at 8.5%, 5 years old
- Surplus: ₹25,000/month
- Recommendation: 70% Invest, 30% Prepay
- Reason: Long horizon, high risk tolerance
- Loan: ₹75L at 9%, 10 years old
- Surplus: ₹40,000/month
- Recommendation: 50% Invest, 50% Prepay
- Reason: Balanced approach, family stability
- Loan: ₹30L at 8%, 15 years old
- Surplus: ₹60,000/month
- Recommendation: 80% Prepay, 20% Invest
- Reason: Debt-free retirement priority
Contributions welcome! Please:
- Fork the repository
- Create a feature branch
- Make your changes
- Submit a Pull Request
- PDF Export
- Comparison Mode
- Goal-Based Planning
- Inflation Adjustment
- Regional Bank Rates
- Portfolio Integration
- EMI Calculator
- Loan Switching Analysis
- Multi-language Support
- GitHub Discussions - Ask questions
- Issues - Report bugs
- Feedback Form - Share feedback
MIT License - see LICENSE file
Built with ❤️ using React, TypeScript, Vite, and open-source libraries
Made for better financial planning