Invest or Payoff Debt?

If you have extra cash, what should you do with it...invest it or payoff your debts? If it's high interest debt you have, you're almost always better off paying down your debt. But often times, even if you have mortgage debt, you'd do better to pay off that debt rather than invest the money otherwise. This calculator will compute the total interest savings you'll get by adding an additional amount to a regular debt payment. Compare that guaranteed return to the return you could get by investing your money over the same period of time to see if you should invest or payoff debt. For more information see our article Increase Your Debt Payment for Guaranteed Returns.

Invest vs. Debt Payoff Calculator

Find out if you're better off investing your money or paying off debt with our free Investment vs. Debt Payoff Calculator. This calculator will compute the interest savings you'll achieve by adding to your debt payment. Use this number along with the number of payments to decide whether you should add to your debt payments rather than invest.
Enter the principal balance owed:
Enter the annual interest rate:
Enter the current monthly payment amount:
Enter a monthly amount to add to the current payment:
Total interest savings (Return on investment):
Guaranteed Rate of Return:

What You Should Know