Debt or investment
Mortgage Early Closure vs SIP / Investment
Should your spare monthly cash reduce the mortgage or be invested? Compare both choices over your remaining mortgage term.
Your regular payment continues and the extra amount reduces the principal every month.
Your mortgage follows its original schedule and the same extra amount is invested monthly for the full remaining tenure.
The investment figures are estimates before tax and fees; actual returns can be higher or lower. Mortgage figures exclude overpayment penalties. Keep an emergency fund and check your lender's terms before acting.
How the two scenarios are calculated
The mortgage scenario adds your overpayment to every scheduled payment, showing the shortened tenure and interest avoided.
The investment scenario keeps the mortgage on its original schedule and invests the monthly amount at the expected return until the original mortgage end date.
Mortgage overpayment vs investment questions
What does the mortgage overpayment scenario show?
It estimates the revised payoff time, how much earlier the mortgage closes, and the interest saved when the selected monthly amount is added to scheduled payments.
How is the monthly investment scenario calculated?
It keeps the mortgage on its original schedule and invests the selected monthly amount until the original mortgage end date using the expected average annual return.
Does this calculator recommend overpaying or investing?
No. It presents the scenarios separately so you can compare predictable interest savings with estimated, non-guaranteed investment returns.
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