How to use this calculator
Enter the extra monthly amount you can spare and the years to compare. Add your loan balance and rate, your expected investment return, and your employer 401(k) match. The tool projects both choices and gives you a verdict with the dollar difference.
The framework: match, then rate
- Capture the full employer match first — it's an instant, guaranteed return that usually beats everything else.
- Then compare your loan rate to your expected return — high-rate debt favors payoff; low-rate debt favors investing.
- Weigh certainty — paying debt is risk-free; investing has a higher expected return but market risk.
Frequently asked questions
Should I pay off loans or invest?
If your return (with match) beats your loan rate, investing usually builds more net worth; high-rate debt favors payoff. The calculator shows the difference.
Why does the employer match matter so much?
A match is an immediate, guaranteed return — often 25–100% — so capturing it usually wins.
Is paying off debt a guaranteed return?
Yes — equal to your interest rate, risk-free. Investing has higher expected returns but carries risk.
Related calculators & guides
This calculator is for educational and planning purposes only and provides estimates, not financial advice. Investment returns are not guaranteed. See how we calculate.