Investment vs Debt Calculator
Got a lump sum? Compare the guaranteed return of paying down debt against the expected return of investing it — and see which grows your net worth more.
Scenario Details
Recommendation
Pay Debt
Potential Investment Value$14,693
Interest Saved on Debt$20,114
Difference$5,420
After 5 years
Invest the money$14,693
Pay off the debt$20,114
Paying the debt comes out ahead by $5,420 — and it's risk-free. Clear the high-interest debt first.
Paying off debt is a guaranteed 15% return. Investing might earn 8%, but that isn't guaranteed.
A simplified comparison — it ignores taxes, employer 401(k) matches and the peace of mind of being debt-free. High-interest debt almost always wins.