Debt vs invest calculator
Compare paying a loan off faster with investing the extra money: interest saved against expected growth.
Comes out ahead
By the time the loan would normally be gone (4 yr 2 mo), paying it off early leaves you $189 better off. Paying early saves $1,154 in interest and clears the debt in 2 yr 1 mo.
Investment returns are not guaranteed; paying a loan is a sure return equal to its rate. Many people pay off anything above about 6–7% first and invest beside lower-rate debt.
How this calculator works
Scenario one puts your extra money toward the loan, then invests everything once it is paid off. Scenario two pays the minimum and invests the extra from day one.
Both are compared on the date the loan would have ended anyway.
Common questions
What is the rule of thumb?
Paying off debt is a guaranteed return equal to its interest rate. Many people pay off anything above about 6–7% first and invest beside lower-rate debt.
What about the employer match?
Getting a full 401(k) match usually beats extra debt payments, except on very high-interest debt.
Does this include taxes?
No. Deductible interest or tax-advantaged accounts can change the answer.
FatDCA calculators are educational estimates, not investment, tax or legal advice. Results depend on the assumptions you enter, and past returns do not predict future returns.
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