Pay off the mortgage early, or keep investing?
Paying off a mortgage creates a certain reduction in debt, while continuing to invest keeps money exposed to uncertain returns. The useful question is how each path changes liquidity, debt, investments and the rest of your plan over the same period.
What shapes the comparison
- The outstanding mortgage, interest rate, remaining payment schedule and repayment date.
- The amount repaid and whether it comes from savings or investments.
- The accessible reserve left after an extra or full repayment.
- The investment assumptions used for the alternative path.
- The comparison horizon, tax treatment represented in the plan and other planned cash needs.
Keep both paths on equal terms
Duplicate the baseline plan and change only the repayment decision in one copy. Compare both over the same dates and assumptions so the difference comes from the decision rather than a different starting point.
Read more than final net worth. Earlier repayment can change monthly cashflow and debt exposure, while using savings or selling investments can reduce the money available for another expense or emergency.
Questions worth testing
- What happens in the month the repayment is made?
- How quickly does accessible money recover afterwards?
- How sensitive is the investment path to a lower assumed return?
- Does either path change when you could stop working or how much spending passive cashflow covers?
How to read the result
The comparison applies only to the amounts, dates and assumptions you enter. Expected investment returns are uncertain, and the model does not determine the best option for you or account for unmodelled fees, penalties, taxes or personal risk preferences. This is not financial, investment, tax or mortgage advice.
How it works in the app
Duplicate the plan: in one copy, pay extra or in full toward the mortgage; leave the other untouched. Compare net worth, the Could-stop-working year, and passive cashflow side by side.
- Duplicate the plan.
- In the copy, open the mortgage and add an “Extra repayment” or “Pay off fully”.
- Use Compare to see net worth, Could stop working, and passive cashflow side by side.
Model this yourself