Comparison: Mortgage vs. Investment
Compare your mortgage equity against an investment portfolio over time
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Select two reports to compare
Choose one mortgage report and one investment report to see the wealth comparison
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What does this tool compare?
It compares two uses for the same money: overpaying your mortgage or investing it. Overpaying reduces your debt and the interest you will pay in future. Investing lets that capital grow through compound interest. The outcome depends primarily on the gap between your mortgage interest rate and the return you earn on your investments.
How to read the chart
The vertical axis shows accumulated net wealth. The 'Mortgage equity' line represents the total debt you have cancelled on your mortgage. The 'Investment portfolio' line shows the investment value in each year. The break-even year is when the portfolio surpasses the mortgage equity. If your expected return exceeds your mortgage rate, investing tends to win over the long term — but the investment return is uncertain.
What this comparison does not cover
This tool compares the financial mathematics of the two options. It does not account for: investment risk (returns can be negative), tax treatment of mortgage interest (varies by Spanish resident status and autonomous community), early repayment notary costs, or your personal liquidity situation. Speak with a financial adviser before making a significant decision.
Frequently asked questions
- Why do I need to save reports before comparing?
- The comparison uses the exact parameters of your mortgage and your investment — principal, interest rate, overpayment strategy, horizon, and contributions. Saving reports in each calculator lets you compare with your own numbers, not generic defaults.
- When is overpaying better than investing?
- In general, if your mortgage interest rate is higher than your expected investment return, overpaying is a guaranteed saving. If you expect to earn more from investments than your mortgage costs, investing may build more wealth over the long term. The mortgage rate is a certain cost; the investment return is uncertain.
- What if I want to compare reducing the term vs. reducing the monthly payment?
- Create two strategies in the mortgage calculator — one reducing the term and one reducing the payment — save each as a separate report, then compare each against the same investment scenario.