Pay Off Mortgage Or Invest Calculator

Introduction: Welcome to our Pay Off Mortgage Or Invest Calculator, a tool designed to assist you in making a strategic decision about whether to pay off your mortgage early or invest your money elsewhere. By inputting your current mortgage details and your expected annual investment return, this calculator provides a comparison result to help you determine the most financially advantageous option for you.

Formula: The calculator uses the standard formula for calculating the monthly mortgage payment based on the loan amount, interest rate, and remaining loan term. It also calculates the total interest paid over the remaining term. The investment scenario considers the future value of the remaining mortgage balance invested at the expected annual return.

How to Use:

  1. Enter your current mortgage balance.
  2. Input the mortgage interest rate.
  3. Specify the remaining loan term in years.
  4. Enter your expected annual investment return.
  5. Click the “Calculate” button to obtain the comparison result.

Example: For example, if you have a current mortgage balance of $200,000, a mortgage interest rate of 4%, a remaining loan term of 15 years, and an expected annual investment return of 6%, the calculator will show you the comparison result.


  1. Q: How does the calculator determine the comparison result? A: The calculator compares the future value of the remaining mortgage balance invested at the expected annual return with the total interest paid by paying off the mortgage early.
  2. Q: Should I prioritize paying off my mortgage or investing? A: The decision depends on various factors such as interest rates, investment opportunities, and personal financial goals. Use the calculator to assess the financial impact.
  3. Q: Can I use this calculator for adjustable-rate mortgages? A: The calculator is primarily designed for fixed-rate mortgages. Results for adjustable-rate mortgages may vary.
  4. Q: What assumptions does the calculator make about investment returns? A: The calculator assumes a consistent annual investment return rate over the remaining loan term.

Conclusion: The Pay Off Mortgage Or Invest Calculator is a valuable tool to help you make informed decisions about your financial strategy. Consider your priorities, risk tolerance, and investment opportunities to determine whether paying off your mortgage or investing aligns with your long-term financial goals. Always consult with financial advisors for personalized advice based on your specific circumstances.

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