Invest vs Pay Off Mortgage Calculator
Should you overpay your mortgage or invest the spare cash? Compare both strategies side by side over your remaining mortgage term.
Learn about this decision →Calculator inputs
The extra amount you could either overpay or invest each month
UK equities have historically returned 7-10% nominal per year
Overpay mortgage
£183,441
Invest instead
£243,022
Investing wins by
£59,580
Mortgage cleared
16yr 11mo
8yr 1mo early
Interest saved
£47,708
Breakeven return
4.44%
Investment return needed to beat overpaying
Important: Investment returns are not guaranteed. Overpaying your mortgage gives a risk-free return equal to your mortgage rate (4.5%). Investing offers higher expected returns but with the risk of loss, particularly over shorter periods. Consider your risk tolerance before deciding.
Net wealth comparison
Year-by-year breakdown
| Year | Overpay | Invest | Difference |
|---|---|---|---|
| 1 | -£191,894 | -£191,852 | +£43 |
| 2 | -£183,416 | -£183,231 | +£185 |
| 3 | -£174,548 | -£174,109 | +£439 |
| 4 | -£165,273 | -£164,456 | +£818 |
| 5 | -£155,572 | -£154,238 | +£1,334 |
| 6 | -£145,425 | -£143,421 | +£2,004 |
| 7 | -£134,812 | -£131,969 | +£2,844 |
| 8 | -£123,712 | -£119,841 | +£3,870 |
| 9 | -£112,101 | -£106,997 | +£5,104 |
| 10 | -£99,958 | -£93,392 | +£6,566 |
| 11 | -£87,256 | -£78,977 | +£8,279 |
| 12 | -£73,971 | -£63,704 | +£10,267 |
| 13 | -£60,075 | -£47,518 | +£12,557 |
| 14 | -£45,541 | -£30,362 | +£15,179 |
| 15 | -£30,339 | -£12,175 | +£18,164 |
| 16 | -£14,439 | £7,108 | +£21,547 |
| 17 | £1,412 | £27,555 | +£26,143 |
| 18 | £19,008 | £49,241 | +£30,233 |
| 19 | £37,876 | £72,245 | +£34,369 |
| 20 | £58,108 | £96,649 | +£38,541 |
| 21 | £79,803 | £122,543 | +£42,740 |
| 22 | £103,066 | £150,023 | +£46,957 |
| 23 | £128,011 | £179,189 | +£51,178 |
| 24 | £154,759 | £210,150 | +£55,391 |
| 25 | £183,441 | £243,022 | +£59,580 |
Important: Not Financial Advice
This calculator is provided for educational and illustrative purposes only. Freedom Isn't Free is not authorised or regulated by the Financial Conduct Authority (FCA) and does not provide financial advice, investment recommendations, or tax guidance.
The projections shown are hypothetical, assume a constant rate of return, and do not account for inflation, taxes, or fees. Actual investment returns vary and you may get back less than you invest. Past performance is not a reliable indicator of future results.
Before making any financial decisions, please consult with an independent financial adviser regulated by the FCA. For help finding an adviser, visit MoneyHelper or Unbiased.
Where links to financial products appear on this page, some may be affiliate links. See our full disclaimer for details.
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