MORTGAGE Mortgage vs Investing Calculator
Should you overpay your mortgage or invest the extra in a stock market index?
Past performance doesn't guarantee future returns
Over 22 years
Investing could win
At 7% returns, investing beats overpaying by £116,804
Overpay
£56,219
Interest saved
6 years sooner
Mortgage-free faster
Invest
£173,023
Portfolio value
£93,823 growth
On £79,200 invested
Break-even return: 0%
You'd need investments to average 0% annually (after fees) to match overpaying your 6% mortgage.
Overpay vs Invest Over Time
Cumulative benefit of each strategy year by year
| Year | Interest Saved | Portfolio |
|---|---|---|
| Yr 1 | £101 | £3,708 |
| Yr 2 | £430 | £7,660 |
| Yr 3 | £1,001 | £11,873 |
Something to consider
Overpaying gives a guaranteed return equal to your mortgage rate (6%). Investing offers potentially higher returns but comes with market risk — your portfolio could fall in value. Many people choose to do both.
Your Monthly Numbers
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