Pay Off Mortgage or Invest? A Calculator Framework That Actually Helps
2026-02-07
Educational content only. Rules and tax laws change over time; verify official sources.
Should you pay down your mortgage or invest extra cash? The best answer depends on expected return, guaranteed interest savings, taxes, and flexibility needs.
Decision Framework
- Mortgage paydown: guaranteed return equal to loan rate
- Investing: higher expected return, but volatility and sequence risk
When Paydown Usually Wins
- High mortgage rate
- Low risk tolerance
- Near-retirement certainty preference
When Investing Usually Wins
- Long time horizon
- Diversified low-cost portfolio
- Mortgage rate well below expected return
Run Both Scenarios
Use Quickstart to compare scenarios and then read housing opportunity cost guide.
Educational Disclaimer
This framework is educational only and not personalized investment advice.
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