Mortgage-free date
Overpay your mortgage or invest: compare both
This calculator compares two ways to use spare monthly cash: overpaying your mortgage or investing it. It shows the two scenarios side by side based on the information you enter. It is an information and comparison tool, not personal financial advice.
Your mortgage
Rough numbers are fine. You can refine them later.
Your LTV 66.7%
An assumption, not a promise. Index funds can rise or fall. Capital at risk. Shown after nume's 0.40% yearly platform fee.
Forecasts are not a reliable indicator of future performance.
You could be mortgage-free by
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Overpaying is a guaranteed saving on interest; investing is not.
Minimum payments only
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Fund management fees are not included and would reduce returns.
Capital at risk. Investments can go down as well as up and you may get back less than you put in. Past performance is not a reliable indicator of future results. Overpaying is a guaranteed saving on interest; investing is not. This tool is guidance to explore the trade-off, not personal advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
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How does the overpay or invest calculator work?
The calculator compares three outcomes for your mortgage-free date, using the figures you enter: carrying on as you are, overpaying your mortgage with your spare cash, or investing that cash in the Mortgage Freedom Pot.
- Your current plan (minimum payments only): this shows your mortgage-free date on a standard repayment mortgage, at your interest rate over the years you have left.
- Overpaying your mortgage: your spare monthly amount is added to every mortgage payment, which reduces the interest you pay and can bring your mortgage-free date forward.
- Investing in the Mortgage Freedom Pot: the same amount is invested each month and grows at the assumed return, after nume's 0.40% yearly platform fee. The date shown is when the projected pot could cover your remaining mortgage balance.
What the calculator doesn't include: the interest rate is assumed to stay the same for the whole term. Tax, fund management fees and early repayment charges are not included.
Common questions
Is nume financial advice?
No. nume provides tools that show different scenarios and trade-offs between overpaying and investing. It does not tell you what to do. If you want personal advice, speak to a regulated adviser.
Should I overpay my mortgage or invest?
It depends on your mortgage rate, how long is left on your fixed rate, your loan to value ratio, your tax position and how comfortable you are with risk. Overpaying can reduce your balance and the interest you pay, but it ties money up in your home. Investing offers the potential for growth and may keep your money easier to access, but its value can fall and you may get back less than you put in. nume's calculator shows both side by side using your own numbers. Capital at risk.
How much can I overpay my mortgage without a penalty?
Some mortgages allow borrowers to make a certain amount of overpayments without an early repayment charge. The amount and conditions vary by lender and mortgage product. Check your mortgage terms or ask your lender before making an overpayment.
Can I do both?
It can be possible to do both, depending on your circumstances and mortgage terms. Some homeowners choose to split spare cash between mortgage overpayments and investing. nume's calculator lets you compare different scenarios. Capital is at risk on investments.