Financial Calculator

Invest vs. Debt Calculator

Should you pay off debt or invest your extra money? Compare the net worth impact of each strategy to make the optimal financial decision.

Inputs
Adjust the values below to model your specific situation.
$10,000

The total amount of debt you currently owe.

$
6%

Annual interest rate on your debt.

%
$300

Extra money available each month after covering essentials.

$
8%

Expected annual return on investments (historically ~7-10% for stocks).

%
10 Years

How many years to compare the two strategies.

Net Worth Projection
Comparing the net worth outcome of paying debt first vs. investing first over time.

Analysis: Investing first results in $5,720 more wealth after 10 years.

How is this calculated?

This calculator uses a Net Worth Comparison by simulating two different strategies with your monthly surplus.

Pay Debt First

Uses monthly surplus to aggressively pay down debt. Once debt is eliminated, all surplus goes into investments.

Invest First

Invests monthly surplus while making minimum debt payments. Aims to capture compound growth earlier.

The chart compares the final net worth of both strategies over time. It answers the question: "Which strategy maximizes wealth?" However, remember that being debt-free has psychological benefits that pure math cannot capture.