Mortgage Prepayment Calculator
Should you prepay your mortgage or keep the cash? Run the numbers
How this calculator works
Prepaying a mortgage is the same as earning your mortgage rate with certainty. So the only real question is: can you reliably earn more than that, after tax, on the same money for the rest of the term?
This calculator keeps the loan term fixed. If you prepay, your monthly payment falls and we assume you invest that saving at your alternative return; if you do not, the lump sum is invested instead. It compares wealth at the end of the term and also shows the interest saved.
Whichever you choose, keep emergency cash first and check your contract for prepayment penalties. Equal-installment loans front-load interest, so early prepayment saves the most.
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