Should I Pay Extra on My Mortgage?
Compare earlier mortgage payoff with investing the same monthly cash budget.
Preparing your calculator…
MansionMath provides estimates for educational purposes. Actual loan terms, taxes, insurance, fees, investment returns, and eligibility may vary.
How this calculator works
Both strategies use the same monthly budget: regular principal/interest payment plus available extra money. The extra-principal strategy invests unused funds and the full freed payment after payoff; the investing strategy pays normally and invests the difference, then the full budget after its payoff. Both receive the selected effective interest tax benefit. After-tax annual effective investment return is converted to monthly growth; month-end deposits are assumed. Net position is investments minus remaining loan, omitting the home value shared by both strategies. Binary search solves the gross investment return where net positions match at your chosen horizon.
Use current quotes, local rates, and measured dimensions to make this estimate useful for your situation.
Frequently asked questions
Is investing always better?+
No. Returns are uncertain, taxes vary, and liquidity matters. Mortgage interest savings follow the fixed loan assumptions; prepayment fees or changing terms may alter them.
How are taxes handled?+
Investment tax is a simplified annual return drag, not a liquidation tax calculation. Mortgage benefit is a user-supplied effective percentage of interest and is invested when received monthly. Consult a tax professional for actual deductibility.