Verdict

Pay Off Debt vs Invest

You have extra cash each month. Should it go to your debt or into the market? We simulate both, month by month.

$500,000
16%
$15,000
$10,000
12%
5 yrs
Do it

Paying off debt wins by $260,225

Your debt rate (16%) beats your expected investment return (12%) — paying it off first is a guaranteed return no investment can promise.

Debt-first — net worth

$1,076,922

Debt cleared in 24 months

Invest-first — net worth

$816,697

Net worth over time

Year 1Year 5
Debt-first: $1,076,922
Invest-first: $816,697

How this verdict is calculated

Both paths spend the exact same cash every month. Debt-first puts the minimum plus the extra toward the debt until it's gone, then invests everything for the rest of the horizon. Invest-first pays only the minimum and invests the extra from month one. We compare net worth — investments minus any remaining debt — at the end.

Common questions

Paying off debt is a guaranteed return equal to the interest rate. Investing can lose money. If your debt rate is high, that guarantee is hard to beat; if it's low, investing often wins but carries real risk.