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Debt Payoff vs. Invest Calculator

Paying off debt eliminates its interest rate for certain. Investing returns are not guaranteed. Enter your numbers to see how that certain rate compares with the return you assume.

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What the math shows

Cost of carrying this debt 1 more year
$0
at the current rate, on today's balance
Debt rate after inflation
0%
APR adjusted for inflation
The gap
0 pts
debt rate after inflation vs. assumed return
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The investing return is entered after inflation, matching the retirement calculator, so the debt rate is converted to an after-inflation rate before the two are compared: (1 + debt rate) ÷ (1 + inflation) − 1. The 7% default reflects long-run U.S. stock history: from 1928 through 2025 the S&P 500 with dividends returned about 10.0% a year, or about 6.8% after roughly 3.0% average inflation (sources: NYU Stern, Aswath Damodaran; Federal Reserve Bank of Minneapolis). It is not guaranteed. This calculator is for educational purposes only and does not constitute financial, investment, or tax advice. Consult a licensed financial advisor or CPA about your specific situation.