Invest or Payoff Calculator

This tool helps users decide whether it’s smarter to use extra money to pay down debt or invest, based on interest comparisons and time horizon.

Purpose:

  • Compare the cost of debt interest vs. the benefit of investment returns

  • Make confident, data-driven decisions about using savings

  • Visualize the financial outcome of each option over time

Inputs Required:

  1. Total Debt Amount – Outstanding balance to evaluate

  2. Annual Interest Rate on Debt – What the debt costs per year

  3. Total Savings Amount – Funds available to invest or pay down debt

  4. Annual Interest Rate on Savings – Projected investment return

  5. Time Period (Months) – Duration to pay off the debt

Outputs Displayed:

  • Total Interest on Debt – Cost of holding debt over the selected timeframe

  • Total Interest on Savings – Earnings from investing the same amount

  • Recommendation: Indicates which option is more beneficial

  • Interest Comparison Chart: Side-by-side bar graph showing the difference

✅ Bonus Insight: Demonstrates the opportunity cost of choosing one path over the other.

How to Use It:

  1. Enter your debt, savings, and rate assumptions

  2. Compare how much you’d pay in debt interest vs. earn in investment returns

  3. Use the data to guide your next financial move

Who It’s For:

  • Anyone juggling debt repayment and savings goals

  • Ideal for people with lump-sum savings and low-to-mid-interest debt

  • Useful for coaching conversations or financial literacy education

Personal Finance Hack:

Always compare interest rates. If your debt interest is higher than your savings return, paying off the debt usually delivers the better financial outcome.

Take Action Today!

✅ Input your real numbers into the calculator
✅ Use the visual to understand the long-term impact of each choice
✅ Revisit the tool whenever your rates or savings situation changes

Clarity is power—this tool helps you make the smarter money move.