Projected wealth edge
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At end of original term
Example calculation
Strategy comparison
Analyzing strategies...
Early payoff timeline
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Interest saved
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At note interest rate
Break-even return
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Required market return
Side-by-side strategy comparison
Under both strategies, your home is 100% debt-free by the end of the term. The table contrasts cash flow timing and ending liquid investments:
| Scenario Metric | Strategy 1: Pay Off Mortgage Early | Strategy 2: Invest Extra Monthly |
|---|---|---|
| Monthly Commitment | -- | -- |
| Mortgage Payoff Month | -- | Full term |
| Guaranteed Interest Saved | -- | $0 (standard amortization) |
| Years Spent Investing | -- | Full term |
| Ending Investment Portfolio | -- | -- |
Risk and Certainty Tradeoff:
Paying down your mortgage avoids interest at your contractual mortgage note rate without market risk. Investing in diversified portfolios historically offers higher expected long-term returns, but actual market returns vary year to year.
Return sensitivity table
How ending wealth changes across different annual investment returns:
| Annual Return | Strategy 1 Portfolio (Mortgage First) | Strategy 2 Portfolio (Invest First) | Net Wealth Advantage |
|---|
How this estimates
This calculator models the fair economic comparison between paying off a mortgage early versus investing surplus cash flow.
In Strategy 1 (Pay Off Mortgage Early), your extra cash accelerates mortgage amortization until your balance reaches $0. From that month onward, your entire previous housing cash flow (your original monthly principal and interest payment plus your extra payment) is invested each month until the end of your original loan term.
In Strategy 2 (Invest Extra Monthly), you pay the standard mortgage payment and invest your extra cash from month 1 through the entire loan term.
Disclaimer: A planning estimate based on your inputs and the assumptions shown. Actual costs and eligibility may differ. Not an offer of credit, loan commitment, or financial, tax, or investment advice. Historical market returns do not guarantee future performance.