How to Use the Invest vs Repayment Calculator
This free loan repayment vs investment calculator helps you decide whether to pay off debt faster or invest your extra money. Enter your financial details to compare three strategies side by side.
Step-by-Step Instructions:
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Debt Value: Enter your total outstanding loan balance (e.g., mortgage, student loan, car loan).
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Debt Interest Rate: Input the annual interest rate on your debt.
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Savings/Investment Interest Rate: Enter the expected annual return on your investments.
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Monthly Contributions: Specify how much extra money you can allocate each month.
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Time Period: Set the original loan term in years.
Understanding the Three Scenarios
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Scenario 1 – Repayment Only: All extra contributions go toward paying off your debt faster, reducing total interest paid.
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Scenario 2 – Invest All Extra: All extra money is invested while making minimum debt payments, maximizing potential investment growth.
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Scenario 3 – Pro Tip X Formula: A balanced approach that splits contributions proportionally based on your debt and investment interest rates for optimal results.
Unlock Full Control with Our Free Excel Calculator
Need to run advanced simulations or customize your debt payoff strategy? Download the free Excel spreadsheet version to:
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Adjust unlimited variables – model different interest rates, loan terms, and contribution amounts
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Save multiple scenarios – compare side-by-side and track progress over time
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Work offline – access your financial projections anytime, anywhere
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Fully editable formulas – tailor calculations to your unique situation