Debt Payoff vs Invest Calculator

Compare paying off your mortgage vs investing the money - see which strategy builds more wealth over time

📊 Enter Your Financial Details

Remaining balance on your mortgage
Your current mortgage rate
Your regular monthly mortgage payment
Additional money you can put toward debt or investing each month
Average annual return (historical S&P 500: ~10%)
Your federal + state marginal tax rate
How many years to compare
Affects mortgage interest tax benefit (2026: $30K standard for married)

🏠 Pay Off Mortgage

Final Net Worth (Year )
Total Interest Saved
Debt-Free Date
Tax Benefit Lost

📈 Invest Extra Money

Final Net Worth (Year )
Investment Portfolio Value
Total Interest Paid on Mortgage
Tax Benefit Retained

📊 Net Worth Comparison Over Time

⚖️ Breakeven Analysis

💡 Personalized Recommendation

Factors Considered:

    ⚠️ Important Assumptions

    • Investment returns are averaged and don't account for market volatility (sequence of returns risk)

    • Tax calculations assume consistent tax bracket throughout the period

    • Mortgage interest deduction assumes itemization threshold is met (if selected)

    • Investment gains are taxed as long-term capital gains (15-20% for most earners)

    • Does not include home appreciation, which benefits both strategies equally

    • Assumes disciplined investing of the extra payment amount