Use this investment vs debt calculator to compare whether investing your money or paying off debt delivers better long-term results. Analyze interest rates, expected investment returns, and time horizons to see which option works best for your situation.
This tool helps you make clearer financial decisions by showing the trade-offs between growing wealth and reducing liabilities.
Inputs
The calculator does not convert currencies. Treat all amounts as your local currency.
This compares the growth of the same extra monthly amount under two assumptions: (1) you invest it, or (2) you use it to reduce debt (approximated as a “guaranteed return” equal to the debt rate).
Results
To see a comparison, please enter your extra monthly amount, debt interest rate, expected investment return, and time horizon.
How to Read the Results
The comparison results illustrate the potential difference between investing surplus money and using it to pay down debt. Outcomes depend heavily on interest rates, expected investment returns, and time horizon. Use this calculator to understand trade-offs and opportunity cost rather than to predict guaranteed outcomes.
Common Use Cases
• Deciding whether to invest or pay off high-interest debt
• Comparing potential investment returns against loan interest
• Evaluating opportunity cost of debt repayment
• Planning a balanced approach to debt reduction and investing
• Stress-testing conservative versus optimistic assumptions
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All calculations provided on Calcufinder are estimates for general informational and planning purposes only. Results are based on assumptions and do not constitute financial or investment advice.