Spare cash each month. Should it kill the mortgage or grow in the market? See both futures side by side.
Your Situation
Mortgage Balance
Mortgage Rate
Years Left
Spare Cash Per Month
Expected Market Return
Your Results
The gap between the two paths
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Overpay path: wealth at end
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Invest path: wealth at end
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Mortgage-free earlier by
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Interest saved by overpaying
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The mortgage saving is guaranteed and tax-free. The market return is neither, and in Ireland the taxman takes a slice of it. That gap in the maths is smaller in real life than it looks on paper.
Your monthly repayment comes from the balance, rate and term. Overpay path: the spare cash goes into the mortgage until it is cleared early, then the full repayment plus the spare cash is invested at your market rate for the remaining years. Invest path: the spare cash is invested every month for the full term while the mortgage runs to schedule. Both paths own the house at the end, so the comparison is the investment pot each path holds. Investment tax (33% CGT or 38% exit tax) is not deducted, which flatters the invest path.
This calculator is for information only and is not financial advice. Figures are estimates based on what you enter. Tax rules change, check revenue.ie for the latest. Talk to a qualified financial adviser before making big money decisions.
