Mortgage or Invest Calculator

Your Financial Situation

Enter your details to compare all scenarios

Current Mortgage Balance

Mortgage Interest Rate (%)

Remaining Term (years)

Expected Investment Return (%)

Extra Money Available Per Month

Apply Capital Gains Tax

CGT Rate (%)

Long-Term Wealth Comparison

Your net position at the end of 15 years

💰 Pay Off First, Then Invest

Mortgage paid off in -

Then invest freed payments for -

                            Investment Balance at Year 15
                            -
                        

Net Position: Debt-free + - invested

📈 Invest the Whole Time

Mortgage balance at Year 15 -

                            Investment Balance
                            -
                        

Equity in home -

Net Position: -

⏸️ Do Nothing Extra

Mortgage paid off in -

Total interest paid -

                            Investment Balance
                            $0
                        

Net Position: Debt-free + $0 invested

🏆

-

Important: This is educational information only, not financial advice. Consult a qualified financial advisor for personalised recommendations.

Visual Comparison: All Scenarios

Net worth over time for each strategy (in years)

🔴 Baseline: Regular mortgage payments, no extra investing

🟠 Pay Off First: Pay mortgage early, then invest freed payments

🟡 Invest Instead: Minimum mortgage + invest extra throughout

Mortgage Payoff Comparison

Comparing accelerated payoff vs. minimum payments

⚡ With Extra Payments

Time to pay off -

                        Time Saved
                        -
                    

Total Interest Paid -

                        Interest Saved
                        -
                    

📋 Minimum Payments Only

Time to pay off -

Monthly Payment -

                        Total Interest Paid
                        -
                    

Detailed Schedules

Month	Principal	Interest	Total Payment	Remaining Balance

Month	Contribution	Total Value	After Tax Value

About This Calculator

This calculator shows you the long-term comparison between paying off your mortgage early versus investing. Unlike simple calculators, this one shows what happens AFTER your mortgage is paid off.

The Three Scenarios Explained

Pay Off First, Then Invest: Use extra money to eliminate mortgage debt quickly. Once paid off, invest the ENTIRE freed-up payment (original mortgage + extra) for the remaining years.
Invest the Whole Time: Make minimum mortgage payments and invest extra money for the full term. You'll have both a mortgage and investments at the end.
Do Nothing Extra: Baseline scenario showing regular mortgage payments with no accelerated payoff or investing.

Key Assumptions

Mortgage calculations: Standard amortization with extra principal payments
Investment returns: Consistent monthly compounding at your specified rate
Freed payments: After mortgage payoff, the full payment amount (not just extra) gets invested
Capital Gains Tax: Optional tax on investment gains
Risk not factored: Mortgage payoff = guaranteed; investments = estimated with market risk
Liquidity: Investments are accessible; home equity is not easily liquid

Important Considerations

Always maintain 3-6 months emergency fund first (calculate your emergency fund)
Pay off high-interest debt (credit cards) before either strategy
Your personal risk tolerance and life stage matter significantly

Disclaimer - Not Financial Advice

This calculator provides educational estimates only and does not constitute financial, investment, or tax advice. Actual results will vary significantly based on market conditions, tax situations, inflation, interest rate changes, and individual circumstances. Past investment performance does not guarantee future results. The scenarios assume you will actually invest freed-up payments after mortgage payoff, which requires financial discipline. Consult with a qualified financial advisor, tax professional, or mortgage specialist before making any financial decisions.

Mortgage Payoff vs Investment Calculator