Payoff vs Invest

Payoff vs Invest \u00b7 decision engine

Got a monthly surplus? See whether paying down the mortgage or investing builds more wealth.

Mortgage balance$

Mortgage rate %

Years left yrs

Monthly surplus$

Expected annual return %

Apply ~15% capital-gains tax on investment gains

\u2014

Pay down first, then invest

Invest from day one

Mortgage cleared in (payoff path)\u2014

Interest saved by paying down\u2014

Your mortgage rate\u2014

Both paths are compared over the same horizon (your current term). Pay down first: the surplus pays down the mortgage; once it's clear, the freed-up payment plus the surplus are invested for the years that remain. Invest from day one: the loan runs its full course while the surplus is invested throughout. The math is only half the story \u2014 paying down is a guaranteed, risk-free return and debt-free peace of mind; investing carries market risk but stays liquid. *Mortgage interest is only tax-deductible if you itemize; most filers take the standard deduction, so there's often no break to lower your effective rate. Indicative only, not financial advice.