Pay Down My Mortgage, or Invest the Cash?

Compare two paths for the cash you have on hand. We never tell you which is better; we just show the math at your numbers so you can decide. Estimates only

This tool is for illustration only and does not provide investment, tax, or legal advice. Consult your own financial, tax, and legal advisors before making decisions.

Your Numbers

Mortgage balance

Mortgage interest rate, %

Remaining mortgage term

Extra cash lump sum

Extra monthly payment

Assumed annual investment return, %

Enter your own assumption. Past performance does not predict future results.

Marginal tax bracket, %22%

Time horizon, years10 yrs

Side-by-Side

Pay Down Mortgage

$35,575

estimated interest saved over 10 years (after-tax)

Fixed return at your mortgage rate
Locked in home equity
No market risk

Invest Instead

Enter your investment assumption above

We need your assumed return to estimate growth.

Uncertain return
Liquid
Market risk

Visual comparison (after-tax)

Pay Down$35,575

Invest-

Enter your investment return assumption above to see the comparison. Paying down a mortgage is a fixed return at your mortgage rate, but the cash becomes locked in home equity. Investing keeps the cash liquid but the return is uncertain.

Pay-down savings assume the after-tax value of interest avoided. Investment growth is estimated based on your assumption and taxed at your marginal rate as a conservative proxy. Real-world taxes vary by account type and holding period.

Want a loan officer to walk through this with you?

Optional. Your results are already shown above.

Estimates only. Actual results depend on rates, returns, taxes, and timing, all of which vary. Not a commitment to lend. All loans subject to qualification. Equal Housing Opportunity.