SCENARIO PLANNER
Mortgage Payoff vs. Invest Scenario Planner
You have extra cash each month. Pay down your mortgage faster, or put it in the market? The math depends on your rate, expected returns, tax situation, and how you feel about carrying debt. Model both paths here.
Not financial advice. Returns are projected, not guaranteed. Consult a financial advisor for your situation.
Your Mortgage & Investment Details
The same amount goes toward payoff OR investing
It's Not Just About the Numbers
When investment returns beat your mortgage rate, the math says invest. But math doesn't account for what happens when the market drops 40% in year two and you still have $280,000 on your mortgage. Paying off debt is a guaranteed return equal to your interest rate. The stock market is not guaranteed.
Paying off wins on risk-adjusted returns — especially if you're within 10 years of retirement, your job is unstable, or carrying the mortgage causes you enough stress to make poor investment decisions during downturns.
Investing wins on raw math — when your rate is low (under 4%), your time horizon is long, and you can genuinely hold through a bear market without selling. If you have a 3% mortgage and believe in long-term index investing, the numbers strongly favor investing.
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