Mortgage Payoff vs. Invest Calculator
Compare using your savings to wipe out a mortgage today against keeping the loan and investing the same cash upfront. Results update instantly and judge the tradeoff on final net wealth after mortgage interest.
Inputs
Compare clearing the mortgage today against investing the same lump sum while keeping the loan.
Inputs
Compare clearing the mortgage today against investing the same lump sum while keeping the loan.
Assumptions
Option 1
Pay off mortgage today
Use savings to clear the balance immediately, then build a new portfolio from monthly investing only.
Option 2
Keep mortgage and invest
Invest the full mortgage balance on day 0, keep the loan in place, and add any extra monthly investing on top.
Option 1
Pay off mortgage today
Savings clear the mortgage immediately, so the portfolio starts at zero and grows from monthly contributions only.
$1,148,528
$1,200 / mo
$0
$1,148,528
Option 2
Keep mortgage and invest
The mortgage stays in place while the same cash is invested upfront and tracked both gross and net of mortgage interest paid.
$2,291,947
$400 / mo
$109,094
$2,182,853
Option 2 wins on net wealth
$1,034,326
Keeping the mortgage and investing upfront ends at $2,182,853 net versus $1,148,528 for paying off the mortgage first.
Portfolio comparison over time
Blue shows the payoff-first portfolio. Green dashed subtracts cumulative mortgage interest from the gross investment path.