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Team Cocco Financial Planning

Cash Flow Strategy: Mortgage Strategy

IFR Module 234 — Extra Payments vs. Invest the Difference

The question everyone asks: "Should I pay extra on my mortgage or invest the difference?" This calculator compares two strategies using the same extra dollars — one reduces debt faster, the other builds a side fund. Which creates more total wealth?

Mortgage Details

Original loan balance
Annual interest rate
Original loan term
Amount available beyond minimum payment
Expected return on side fund
Tax on investment gains (0% if tax-free vehicle)

Strategy A: Extra Payments

Pay extra on mortgage principal

$0
Net Position at End of Term
VS

Strategy B: Invest the Difference

Standard payments + side fund

$0
Net Position at End of Term

Cumulative Wealth Comparison

Net position = Equity accumulated + Side fund value - Remaining mortgage balance

Interest Paid & Fund Growth

Year-by-Year Comparison

Year A: Balance A: Interest Paid A: Equity B: Balance B: Interest Paid B: Side Fund B: Net Position

Strategy Insight

Team Cocco Financial Planning · Largo, FL