Invest vs Pay Off Mortgage Calculator UK
Overpay or invest? The rule of thumb everyone quotes ignores the wrapper your money sits in. Plug in your real rate, tax bracket and ISA headroom and the answer often flips.
Effective return on £100 invested (basic-rate, 4.5% mortgage)
Wrapper choice usually matters more than the rate-vs-return gap.
Key takeaways
The invest vs pay off mortgage calculator shows which use of spare cash leaves you wealthier over your mortgage term.
Mortgage overpayment is a guaranteed return at your mortgage rate; investing offers a higher expected return but is uncertain.
Tax wrappers like ISAs and pensions tilt the comparison heavily in favour of investing for most UK households.
The right answer depends on your mortgage rate, expected investment return, your tax position, and how much risk you can stomach.