Debt vs. Invest Calculator
Compare two uses for the same extra monthly amount.
How much debt are you comparing?
Pay-debt net position
Invest-extra net position
Debt-free if prioritized
Debt-free on minimum
How the two paths are modeled
Both paths use the same monthly budget: the minimum payment plus your extra amount. The pay-debt path sends that full budget to debt until payoff, then invests it. The invest path makes the minimum payment and invests the extra, then invests the full budget after payoff.
Debt interest accrues monthly from the stated annual rate. Investment growth uses the shared monthly compounding convention, with investments added at month end. The comparison uses investments minus remaining debt at the selected horizon.
Modeled investment returns are uncertain. Paying debt reduces a known contractual cost, subject to your loan terms. Taxes, fees, penalties, changing rates, and market volatility are excluded.