FinancePay Extra on MortgagevsInvest the Difference

Pay Extra on Mortgage vs Invest the Difference

Should you pay extra on your mortgage or invest the difference? See which builds more wealth.

Share this comparison

Your Numbers

Remaining Mortgage Balance

Mortgage Interest Rate

Years Remaining

Extra Monthly Amount

Expected Investment Return

Marginal Tax Rate

Winner

$495,367

Interest Saved (Pre-Tax)$115,668

After-Tax Interest Savings$90,221

Months to Payoff179

Months Saved121

Total Financial Benefit$495,367

$426,686

Total Contributions$150,000

Investment Growth$325,513

Capital Gains Tax (15%)$48,827

After-Tax Portfolio Value$426,686

For your situation

Pay Extra on Mortgage wins

+$68,681

net financial benefit difference

Paying Extra on Mortgage wins by $68,681 over 25 years. Your 8% investment return beats your 6.5% mortgage rate, making investing the smarter choice.