Pay Down Debt or Invest Calculator

If you have some extra cash you may wonder if its better to invest the money or use it to pay off debt you already owe. This calculator compares the future the future value of an investment to the future impact of using the extra cash to pay down a current debt. Paying down a debt that has higher interest rate is generally preferable to making an investment that earns a lower interest rate or rate of return. To make a fair comparison, you need to calculate the after-tax rate on your debt and investments.

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