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You’ve got money set aside. Repay or invest?

Separate good debt from bad and compare, with your own numbers and assumptions in front of you, repaying versus investing.
  • Credit intermediary and insurance agent registered with BdP and ASF
  • No personal data needed to simulate
  • Intermediation service at no cost to you
Since January 2026 the 0.5% commission has again applied to Mortgage repayments with a variable rate. The simulator already includes it.

Two questions to compare repaying with investing

€

Savings, a tax refund, a bonus or an inheritance.
€

This is kept out of the calculation. If you’re not sure, we’ll assume €5,000.
We’ll assume mortgage and personal credit as an example and a return of 5% per year (before taxes and product fees; an assumption, not guaranteed). You can change everything in “In detail”.

Pay less for what you already owe

Before using your savings, see if you can lower the cost of your debts.
  • CreditConsolidate creditsSeveral consumer credits in a single monthly payment, easier to manage.Subject to analysis. Extending the term can increase the total cost.Learn more about consolidating credits
  • CreditTransfer your MortgageLower the spread and your monthly payment without touching your savings.Subject to analysis and approval. Transfer costs may apply.Learn more about transferring your Mortgage
  • InsuranceReview your Life InsuranceIf you repay part of the loan, the outstanding balance goes down. Make sure the insurance follows the new amount and compare alternatives.Compare Life Insurance
  • EnergyInvest in your homeSolar panels: simulate how much they can cut your energy bill and how long it takes to recover the investment.Simulate solar panels

How we calculate

  1. 1Answer the two questions. No personal data needed.
  2. 2The result with these assumptions appears on the side, with the math done.
  3. 3Want to use your own loans? Open “In detail”. Questions? A manager will walk you through it, with no intermediation costs.

Illustrative cases

Illustration: Joana and Diogo
Illustrative example

Joana and Diogo had €20,000 and two debts

In 25 years

With the plan€53,736

A story with numbers from the simulator. It could be yours.
  • Setúbal
  • Home: €150,000 at 3.5%
  • Personal Credit: €12,000 at 10.5%
  • €20,000 set aside
  1. 1. The dilemmaThey live in Setúbal. After years of saving, they put together €20,000. They owe €150,000 on the house, at 3.5%, and €12,000 on the car, a personal credit at 10.5%. Repay or invest?
  2. 2. Instinct: pay down the mortgage“It’s the biggest debt. It’s the one that weighs on us the most.”It makes sense. But the mortgage is the cheapest debt they have.They would end up with €47,361
  3. 3. The brother-in-law’s advice: invest it all“Idle money loses value. Put it all to work.”Better. But they keep paying 10.5% a year on the car while they hope to earn 4.5%.They would end up with €48,878
  4. 4. The math: separate good debt from bad“First the car, then we’ll see.”The car loan is bad debt: every euro they put there earns 10.5%, with no risk. The mortgage is good debt: low rate, asset that lasts. Plan: pay off the car and invest the rest.They end up with €53,736
The same €20,000. €6,375 more than following instinct and €4,857 more than investing it all, after 25 years.First you clear the bad debt. Then the break-even rate tells you whether it pays to repay the good debt or invest.
Illustration: Paulo
Illustrative example

Paulo had €20,000 and only the mortgage

In 25 years

With the plan€48,878

With no bad debt, the decision hangs on a rate. Numbers from the simulator.
  • Funchal
  • Home: €150,000 at 3.5%
  • €20,000 set aside
  1. 1. The dilemmaHe lives in Funchal. He saved up €20,000 and owes €150,000 on the house, at 3.5%. He has no cards or personal loans. Repay or invest?
  2. 2. Repay it all“I want to see the debt go down.”He saves interest for sure, but the money gets locked into the house and he pays the early repayment fee.Would end up with €47,361
  3. 3. Invest it all“The mortgage rate is low. The money earns more elsewhere.”It can earn more, but only if the investment makes more than 4.34% a year, and with risk.Would end up with €48,878
  4. 4. The math: the break-even ratestories.goodDebtOnly.chapters.4.quoteAfter fees and taxes, repaying only loses if the investment earns more than 4.34% a year. With 4.5% expected, investing it all comes out ahead, with risk.Ends up with €48,878
With no bad debt, it all depends on one rate: 4.34% a year.Below it, repaying is a guaranteed return. Above it, investing can pay off, with risk. Before using your savings, it’s worth reviewing the spread: lowering the rate changes the break-even rate.
*Illustrative, non-binding example, with values that are merely indicative and subject to confirmation. This does not constitute a credit offer and does not replace an assessment of each client’s personal and financial situation, nor the approval of the lending credit institution. CrediSegur (CRRF Brokerage, Lda.) — Tied Credit Intermediary registered with Banco de Portugal under no. 0001290. Illustrative case: fictional characters, illustrative figures calculated by the simulator with a return of 4.5% per year (assumption, not guaranteed), 28% tax on gains and early repayment fees included. This is not financial advice.

Myths

  • Depends“Paying off the loan is always the best use of the money.”The interest saving is certain. The return on an investment is not. The answer depends on the loan’s rate, the fee and the term.What to do: first pay off the expensive debts (cards, consumer credit), then build an emergency fund, and only then compare.Source: simulator calculation.
  • Myth“Investing always earns more, so I should never pay off.”The long-term average return is not guaranteed and there can be negative years. Paying off is a “return” equal to the loan’s rate, with no risk.What to do: look at the threshold the simulator shows: the minimum return the investment would have to make.Source: CMVM, Portal do Investidor.
  • Myth“Paying off a mortgage early always carries a fee.”The fee has a legal maximum, lower on a variable rate, and there are situations where none is charged.What to do: ask the bank for the fee amount before deciding.Source: DL n.º 74-A/2017, art.º 23.º.

The next step

You already have this answer. Keep going — each tool prepares the next decision.

Support from a CrediSegur manager

A CrediSegur manager follows your request with the institutions we work with. Our intermediation service has no cost for you.

Frequently asked questions

Good debt finances something that lasts, gains value or cuts expenses, at a low rate: your home or energy-efficiency improvements, for example. Bad debt finances consumption or assets that lose value, at high rates: credit cards, overdrafts or expensive Personal Credit. As a rule of thumb: repaying a debt earns you, with no risk, the rate that debt charges.
It depends on the loan rate, the early repayment fee, taxes and how much you expect to earn by investing. The simulator calculates the break-even rate: if you expect to earn less than that, repaying pays off; if you expect to earn more, investing may pay off, but with risk.
The maximum fee is 0.5% of the amount repaid on a variable rate and 2% on a fixed rate, plus 4% Stamp Duty on the fee. The temporary exemption for variable rates ended on December 31, 2025. Always check what your contract says. To compare reducing the term or the monthly payment, use the early repayment simulator.
Reducing the term saves more interest, because your monthly effort stays the same. Lowering the monthly payment gives you more room in your budget every month. If you invest the difference, the two paths get closer. You can switch between them in step 2 and see the impact.
As a rule, no. Money used for early repayment doesn’t come back. It’s wise to keep 3 to 6 months of expenses in an accessible deposit before repaying or investing. Enter that amount in the reserve field.
The outstanding balance goes down, so it’s a good time to check that the insurance follows the new amount and to compare alternatives. CrediSegur can do that review for you.
Official data verified on 10/20/2026 · Sources: Diário da República, Autoridade Tributária, Banco de Portugal, INE, Segurança Social, Assembleia da República · see sourcesData from INE – Portugal, reused under the CC BY 4.0 licence.
Important note: In every scenario you spend the same amount of money every month. What you stop paying the bank after repaying is invested at the same rate of return, and we compare what you have at the end of the longest credit. It assumes constant interest rates and returns; with a variable rate, the monthly payment changes with Euribor. The return on an investment is not guaranteed and can be negative, unlike the savings from early repayment. The classification of good and bad debt is a general guideline. Informative simulation, which is not a credit offer, financial advice or an investment recommendation. The commissions considered are the legal maximum limits (DL n.º 74-A/2017, art.º 23.º for Mortgage and DL n.º 133/2009, art.º 19.º for consumer credit), plus Stamp Duty. The rate of return and the tax on gains are assumptions. Sources (in Portuguese): Perfis de rendibilidade: estimativa CrediSegur; inflação de referência: Banco Mundial, IPC de Portugal (via FRED), taxa média anual composta 2000–2025 (2,1 %); Art.º 71.º e 72.º do CIRS. CRRF – BROKERAGE, LDA (CrediSegur) is a tied Credit Intermediary registered with Banco de Portugal (no. 0001290) and an Insurance Mediator registered with ASF (no. 421571530); it does not charge fees for credit intermediation.Parameters updated on October 20, 2026.