How to Pay Down Debt - Eliminate Debt or Invest

Should I use extra money to pay down debt immediately or invest it until there's enough to pay off the debt at once?

See if it's better to pay down debt or invest your extra money until it can pay off the debt all at once. Will you pay more interest on your loan or earn more on your investment? Enter the information about your debt and investment and this calculator will show you how to lower the debt faster by showing what happens if you pay down debt first or put it into an investment until it grows to the pay off debt amount.

How to Pay Down Debt - Eliminate Debt or Invest
The amount, in addition to your Debt Monthly Payment amount, you can pay each month toward your debt investment.

Any cash you have available to be used as a lump sum payment toward your debt or as a lump sum deposit info your investment.
The percentage of federal taxes you pay.

The percentage of state taxes you pay.


The current total balance of your debts.

The interest rate (or average rate if there are multiple depths included in Debt Balance) you are paying on the debt.

The principal and interest portion of each monthly payment. This may not be the amount you write a check for each month. Depending on the type of loan, your actual payment may include other amounts for escrow, private mortgage insurance (PMI), fees, or property taxes.


If you already have an investment plan that you will continue putting the additional money into, enter the balance here as a starting point.

The rate you anticipate your investment will earn each year.