Pay Off Mortgage Early, or Invest?
Compare the wealth impact of making extra mortgage payments vs. investing that money instead.
Mortgage
Extra Money
With a 7.0% return vs a 2.0% mortgage, investing your extra money builds more total wealth over 30 years.
Pay Off Mortgage Early
Paying off early also shortens your mortgage by 4.7 years.
Invest Instead
Total Wealth From Your Extra Money
Simplified simulation assuming fixed rates. Investment returns are not guaranteed. This is not financial advice.
Should extra money go to the mortgage or into investments?
Mathematically, if investment returns beat your mortgage rate, investing usually builds more wealth; but prepaying is a guaranteed return (interest saved) while investment returns fluctuate. This calculator runs both paths on real historical returns so you can choose by risk preference.
What does the calculator take into account?
Your mortgage rate, remaining term, the extra monthly amount, and investment results simulated with real 0050 returns. It compares the net-worth gap between the two strategies at the end of the same period.
Pay down or invest — which gets you free sooner?
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