Calculators

Prepay mortgage vs invest

Extra payments or the market? Judged at the same finish line, with the freed-up payment invested too.

Your mortgage & the extra money

Mortgage balance ($)Mortgage rate (% annual)Amortization remaining (years)CompoundingExtra money each month ($)Expected investment return (%/yr)

Base payment: $3,420.77/mo. Both options are judged at the same finish line — the month your untouched mortgage would be paid off (22.0 years). Prepaying pays the mortgage off 7.3 years sooner, then redirects the whole payment into investments.

Invest the extra

$624,645.64

Prepay, then invest

$499,182.49

Investing wins by

$125,463.15

Interest saved by prepaying

$124,762.10

Portfolio value under each option

The prepay line sits at zero until the mortgage dies, then climbs steeply — the whole payment goes to investments. A guaranteed 4.79% (your mortgage rate, after tax, risk-free) against a hoped-for 7% is the real trade; the gap narrows fast as rates converge.

Not financial, tax, or investment advice.