Pay off mortgage or top up super?

The classic trade-off: guaranteed return from mortgage payoff vs tax-advantaged super. This calc compares both paths using the same after-tax dollar commitment.

Built on 2025-26 ATO rates · Last reviewed April 2026

Your salary

Spare after-tax dollars per year

Mortgage interest rate

Your current home loan rate

Expected super return

APRA balanced median ~6.7%

Time horizon (years)

Pay off mortgage — future value at 20y

$451,036

Guaranteed 6.2% return (the interest saved)

Top up super — future value at 20y

$595,159

6.7% return on larger pre-tax contribution

Super comes out ahead by

$144,123

At your marginal tax rate of 32%, the pre-tax equivalent of $12,000 after-tax is $17,647 — meaning you can contribute more to super for the same take-home hit.

Caveats the maths doesn't capture: super is locked until preservation age. Mortgage payoff frees cash flow and reduces insolvency risk. Super has tax-advantaged earnings you can't see in a simple FV calculation — the gap usually widens further in super's favour over long horizons. For the last 10 years before retirement, many planners prefer mortgage payoff for the certainty.

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Where these numbers come from

General information only — not financial advice. Super decisions are long-term; verify with a licensed adviser.