Invest vs. Pay Off Debt
Should you put extra cash toward your debt or into investments? This calculator runs both scenarios side-by-side over your chosen time horizon.
Your Debt
$
%
$
Your Surplus Cash
$
%
%
%
Pay Off Debt: Net Worth
$106,778
Debt paid off in 1 yr 9 mo
Invest First: Net Worth
$86,542
After 10 years investing extra
Interest Paid (Pay Off)
$1,004
Interest Paid (Invest First)
$3,042
10-Year Outcome
Pay Off Debt First
Months to debt-free
1 yr 9 mo
Total interest paid
$1,004
Net worth at year 10
$106,778
Invest Surplus Now
Debt payoff
At minimum payment pace
Total interest paid
$3,042
Net worth at year 10
$86,542
The pay-off-first strategy catches up in net worth at year 2.
Year-by-Year Net Worth
| Year | Pay Off Debt First | Invest First | Difference |
|---|---|---|---|
| 1 | -$6,228 | -$6,242 | +$14 |
| 2 | $2,414 | $3,163 | -$749 |
| 3 | $12,503 | $13,263 | -$760 |
| 4 | $23,320 | $24,108 | -$788 |
| 5 | $34,920 | $35,755 | -$835 |
| 6 | $47,359 | $44,580 | +$2,778 |
| 7 | $60,697 | $53,999 | +$6,697 |
| 8 | $74,998 | $64,099 | +$10,899 |
| 9 | $90,334 | $74,929 | +$15,405 |
| 10 | $106,778 | $86,542 | +$20,236 |