Pay off debt or invest calculator

Pay off debt or invest?

Paying off debt is better: you save 3382,57 € more.

Savings from paying off debt9671,51 €

Gain from investing6288,95 €

Compares the interest you save by paying off debt with what you'd earn investing that money instead. Rule of thumb: if your debt costs more than your expected return, pay it off. Not financial advice.

This pay off debt or invest calculator compares paying off debt against investing the same money, based on your debt’s interest rate, your expected investment return and the number of years involved.

Which one wins on paper

Enter the money you have available, your debt’s interest rate, the return you expect from investing and the time horizon. The tool shows the interest you’d save by paying off debt side by side with the gain you’d get by investing instead, and tells you which one comes out ahead.

Not financial advice — investing carries risk that paying off debt doesn’t.

FAQ

How does this comparison work?

It compares the interest you'd save by paying off debt with the gain you'd get by investing the same amount instead, over the same number of years.

What's the simple rule of thumb?

If your debt's interest rate is higher than your expected investment return, paying it off usually wins. If your expected return is higher, investing usually wins — though investing carries risk that guaranteed debt payoff doesn't.

Does it account for risk?

No — it only compares the numbers you enter. Paying off debt is a guaranteed return; investment returns are not guaranteed. This is not financial advice.