Free financial decision tools

Pay Off Debt or Invest?

See how much you'll have (or owe) under each strategy. Add all your debts and compare the math side by side.

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Your Debts
Add each debt you're considering paying off
Credit Card
$
%
$
Car Loan
$
%
$
📈
Investment Details
What you'd do with the extra money
Money above minimum payments you can put toward debt or investing
Any existing investments that will keep growing
Highest interest rate first — saves the most money
⚙️
Time Horizon
How far out to project both scenarios
Capital gains tax on investment profits

Your Results

Net worth comparison after 5 years

PAY OFF DEBT FIRST
$4,200
more net worth after 5 years
Strategy A: Pay Debt First
$0
Debt-free, then invest
Strategy B: Invest First
$0
Min payments + invest the rest
Pay Debt First $0
Invest First $0
Net Worth Over Time
Pay Debt First
Invest First
Detailed Breakdown

Pay Debt First

Total Paid to Debts$0
Interest Paid$0
Debt-Free Month—
Months Investing After0
Investment Balance$0
Remaining Debt$0
Net Worth$0

Invest First

Total Paid to Debts$0
Interest Paid$0
Remaining Debt$0
Total Invested$0
Investment Balance$0
After-Tax Gains$0
Net Worth$0
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Pro tip: Always capture your employer's 401k match before making extra debt payments — that's an instant 50-100% return on your money.
How This Calculator Works

This tool compares two strategies: Strategy A puts all extra money toward paying off debt using your chosen method (avalanche or snowball), then invests once debt-free. Strategy B makes only minimum debt payments and invests all extra money immediately. Net worth is calculated as investment balance minus remaining debt. The calculator factors in compound interest on both debt and investments, and applies your specified capital gains tax rate on investment profits. In reality, your decision may also involve factors like employer 401k matching, tax deductions, emergency fund needs, and psychological peace of mind — which this calculator doesn't capture.