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Disclaimer: This spreadsheet does not constitute financial advice and the creators are not responsible for any results or mistakes. Please consult a financial advisor if you need one.
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PAY OFF YOUR MORTGAGE OR INVEST?
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Monevator mortgage (over)repayment versus investment calculator: create your own copy of this sheet then experimenthttps://monevator.com/pay-off-mortgage-or-invest/
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Mortgage amount£300,000HOW TO USE
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Mortgage term (years)251. Make a copy of sheetScenario 1: Standard repayment mortgage; spend spare cash on sweets et cetera
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Mortgage interest rate (repayment)4.5%>FILE >Make a copyScenario 2: Repayment mortgage; spare cash goes on overpayments per cell B14
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Mortgage interest rate (interest only)4.5%2.Edit YELLOW cellsScenario 3: Repayment mortgage; instead of overpaying you invest spare cash
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Scenario 4: Interest-only mortgage; make zero mortgage payments, invest 100%
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Per monthPer year
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Mortgage payment (repayment)£1,667£20,010
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Mortgage payment (interest-only)£1,125£13,500Four columns show net worth: outstanding mortgage is offset by any investment growth
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When cells turn GREEN you're in positive territory (mortgage balance + any investments)
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Monthly overpayment (or, alternatively, additional investment amount) £250£3,000
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Percentage of monthly re-payment mortgage
15.0%
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Total monthly repayment plus overpayment£1,917£23,010Wealth warning: Markets are volatile. Rates and returns will not be smooth like in this tool.
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Total (Interest-only) investment £792£9,510You could see better or worse results accordingly. Be prudent and seek advice if needed!
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Investment return7%
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Net worth: outstanding mortgage balance + investment portfolio (for scenarios 3 & 4)Investment projections
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Scenario 1Scenario 2Scenario 3Scenario 4Scenario 3Scenario 4
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YearRepayment mortgage with no overpayment or investmentRepayment mortgage + overpaymentRepayment mortgage + investment (no overpayment)Interest-only mortgage + investment (no overpayment)Investment totalInvestment total
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0-£300,000-£300,000-£300,000-£300,000£0£0
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1-£293,354-£290,291-£290,256-£290,179£3,098£9,821
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2-£286,403-£280,137-£279,983-£279,648£6,420£20,352
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3-£279,132-£269,516-£269,150-£268,355£9,983£31,645
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4-£271,528-£258,407-£257,725-£256,247£13,802£43,753
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5-£263,574-£246,787-£245,675-£243,263£17,898£56,737
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6-£255,254-£234,634-£232,964-£229,340£22,290£70,660
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7-£246,553-£221,923-£219,553-£214,411£27,000£85,589
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8-£237,452-£208,627-£205,402-£198,403£32,050£101,597
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9-£227,932-£194,721-£190,467-£181,237£37,465£118,763
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10-£217,975-£180,176-£174,704-£162,831£43,271£137,169
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11-£207,561-£164,963-£158,064-£143,094£49,497£156,906
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12-£196,669-£149,050-£140,495-£121,930£56,174£178,070
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13-£185,276-£132,407-£121,943-£99,236£63,333£200,764
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14-£173,359-£115,000-£102,350-£74,902£71,009£225,098
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15-£160,896-£96,792-£81,655-£48,808£79,241£251,192
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16-£147,859-£77,748-£59,792-£20,828£88,067£279,172
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17-£134,224-£57,829-£36,693£9,174£97,532£309,174
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18-£119,962-£36,995-£12,282£41,345£107,680£341,345
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19-£105,046-£15,204£13,517£75,842£118,563£375,842
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20-£89,444£7,588£40,788£112,833£130,232£412,833
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21-£73,125£31,427£69,620£152,498£142,744£452,498
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22-£56,056£56,361£100,105£195,030£156,161£495,030
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23-£38,203£82,441£132,345£240,637£170,548£540,637
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24-£19,531£109,719£166,445£289,541£185,976£589,541
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25£0£138,250£202,518£341,980£202,518£641,980
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26£20,428£168,091£240,684£398,210£220,256£698,210
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27£41,794£199,304£281,071£458,504£239,277£758,504
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28£64,142£231,950£323,814£523,158£259,672£823,158
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29£87,517£266,097£369,059£592,485£281,542£892,485
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30£111,965£301,812£416,958£666,824£304,993£966,824
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