Mortgage Payoff vs Investment Calculator
Should you pay off your mortgage faster or invest that extra money? Compare three scenarios.
Winner: Invest the Whole Time
Investing throughout the entire 15 years leaves you $101,416 wealthier, even after accounting for the remaining mortgage balance.
This is educational information only, not financial advice. Consult a qualified financial adviser.
🏠 Pay Off First, Then Invest
📈 Invest the Whole Time
⏸️ Do Nothing Extra
Net Worth Over Time
Mortgage Payoff Comparison
With Extra Payments
Minimum Payments Only
Yearly Mortgage Schedule (With Extra)
Mortgage calculations use standard amortisation with extra principal payments. Investment returns assume consistent monthly compounding at the specified rate. After mortgage payoff in Scenario 1, the full freed payment (original + extra) is invested. Capital Gains Tax is applied to investment gains only. Market risk is not factored - mortgage payoff is guaranteed; investment returns are estimates.
This calculator provides educational estimates only and does not constitute financial, investment, or tax advice. Actual results will vary based on market conditions, tax situations, inflation, and interest rate changes. Consult a qualified financial adviser before making financial decisions.
The three scenarios explained
Pay Off First, Then Invest: Use your extra money to eliminate mortgage debt as fast as possible. Once paid off, invest the entire freed payment (your original mortgage repayment plus the extra) for the remaining years. This gives you a debt-free home and a growing investment portfolio.
Invest the Whole Time: Make only minimum mortgage payments and invest the extra money for the full term. At the end you will have both a mortgage balance remaining and an investment portfolio. The net position is portfolio minus remaining debt.
Do Nothing Extra: The baseline. Regular mortgage payments with no extra payoff or investing. You end up debt-free at the end of the term with no investment portfolio.
Important: Mortgage payoff is a guaranteed return (you save the interest). Investment returns are estimated and carry market risk. This calculator assumes consistent returns - actual markets fluctuate. Always maintain an emergency fund before either strategy.
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