Disclaimer: This calculator provides estimates only and should not be considered financial or superannuation advice. Results depend on assumed returns, tax rates and property values which will differ from actual outcomes. Always consult a licensed financial adviser before making decisions about super contributions or mortgage repayments. Evercend Pty Limited does not hold an Australian Financial Services Licence.
Super vs mortgage calculator inputs and results
Extra funds
The additional amount you can direct to either super or your mortgage.
Your mortgage
Your super
Settings
Used to calculate the after-tax benefit of extra super contributions.
Enter your details to compare strategies
Add your extra annual amount, mortgage details and super balance to compare net wealth outcomes over your chosen timeframe.
Super vs mortgage: comparing two paths for spare money
The Super vs Mortgage calculator compares two ways to use spare money: making extra repayments on your home loan or salary sacrificing into super. It projects your wealth position under each path over a period you choose.
How to use this calculator
Enter your details
Enter your spare amount, your home loan balance, interest rate and remaining term, your salary and marginal tax rate, and your current super balance with an assumed net return.
Read the comparison
The calculator shows how each option changes your loan, your super and your overall position over time.
How this calculator works
On the mortgage side, extra repayments reduce the loan balance and the interest charged over the life of the loan, so the effective benefit equals your loan interest rate, and because it lowers an expense rather than producing income it is not taxed. On the super side, salary sacrifice is a concessional contribution taxed at 15 percent in the fund instead of at your marginal rate plus the 2 percent Medicare levy, so the same cut to take-home pay can place more dollars into super, though the money is preserved until a condition of release and its earnings are taxed at up to 15 percent. The calculator grows each path over the period and compares the results.
Assumptions used
The mortgage benefit is certain because it equals your rate, while the super return is an assumption that varies with markets, so a projection is a model, not a prediction. The comparison assumes contributions stay within the $32,500 concessional cap and does not model Division 293 tax, which adds 15 percent above $250,000 and narrows the super benefit. It also assumes the home is your main residence, which is generally exempt from capital gains tax. There is no single right answer, because the outcome depends on your loan rate, your assumed return, your marginal rate and your time horizon.
Worked example
A person on a 30 percent marginal rate plus the 2 percent Medicare levy has $10,000 of pre-tax income to direct.
Applied to the mortgage, it is taxed first, leaving about $6,800 to reduce a loan charging 6 percent, a certain saving. Salary sacrificed instead, the full $10,000 enters super and is taxed at 15 percent, leaving $8,500 invested at an assumed but uncertain return.
The calculator applies your actual figures to project which path is ahead over the period.
What changes the super versus mortgage outcome
Several things change which option comes out ahead. The main ones are:
Loan rate versus assumed super return
The central comparison: a higher loan rate favours repayments and a higher expected return favours super.
Marginal tax rate
Salary sacrifice saves the gap between the marginal rate plus Medicare levy and 15 percent, so higher earners gain more.
Time horizon
Longer periods let compounding and the tax break build.
Access and liquidity
Extra mortgage repayments can often be redrawn or offset while super is locked until preservation age.
Concessional cap
The concessional cap of $32,500 limits salary sacrifice.
Division 293 tax
Division 293 tax above $250,000 reduces but does not remove the super benefit.
Certainty
The mortgage saving is guaranteed while super returns vary with markets.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Contributions tax on salary sacrifice | 15% in the fund | ATO, Salary sacrificing super |
| Concessional contributions cap 2026-27 | $32,500 | ATO, Understanding concessional and non-concessional contributions |
| Tax on super fund earnings (accumulation) | Up to 15% | ATO, How SMSFs are taxed |
| Division 293 threshold | $250,000 combined income and concessional contributions | ATO, Division 293 tax on concessional contributions by high-income earners |
| Preservation age | 60 for anyone born after 1 July 1964 | ATO, When you can withdraw your super |
| Main residence | Generally exempt from capital gains tax | ATO, Eligibility for main residence exemption |
| Extra mortgage repayments | Reduce the interest charged over the life of the loan | ASIC MoneySmart, Pay off your mortgage faster |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
There is no single answer. Extra repayments give a certain saving equal to your loan rate, while salary sacrifice gives a tax break but an uncertain return, and the money is locked until preservation age. The result depends on your rate, expected return, marginal rate and time horizon.
Related calculators and guides
Sources
- •ATO, Salary sacrificing super
- •ATO, Understanding concessional and non-concessional contributions
- •ATO, How SMSFs are taxed
- •ATO, Division 293 tax on concessional contributions by high-income earners
- •ATO, When you can withdraw your super
- •ATO, Eligibility for main residence exemption
- •ASIC MoneySmart, Pay off your mortgage faster
Content reviewed and figures checked against the sources above on 10 August 2026.