Pay debt or invest

Compound the same extra monthly amount at the debt rate versus an expected investment return.

Use this comparison to explore what is debt retirement balance versus investing the same extra cash inside household finances.

Labels the illustrated state and tax-year pack. This tool’s numbers do not change with state income tax. Medicare, HSA, 401(k), and RMD rules stay federal.

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Example report

Illustrated results

Interest avoided by paying debt

$10,864

Estimated investment earnings

$3,478

Which wins in this illustration

Paying debt

Difference

$7,387

Interest avoided vs investment earnings

Assumptions

  • Compares compounding at the debt interest rate versus the expected investment return on the same extra monthly amount.
  • Taxes, risk, emergency reserves, and employer match are not included.
  • Rule year 2026: IRS federal income tax (2026-rev-proc-2025-32) and California state rules (2026-enacted-v1; progressive income tax). Medicare IRMAA, HSA, 401(k), and RMD tables are federal.

Educational planning software—not investment, tax, legal, Medicare, or Social Security advice. Projections depend on your inputs and assumptions. Optional professional review is separate when available.

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