Eliminate Debt or Invest
Calculator
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Title
Additional Monthly Amount
Cash On Hand
Federal Tax Rate %
State Tax Rate %

Debt
Debt Balance
Interest Rate %
Monthly Payment

Investment
Starting Balance
Anticipated Rate of Return % per year

Invest
Full Length
Invest Extra
to Pay Debt
Invest After
Debt Paid
Debt Payoff Time
Effective After Tax Value
Recommendation

Debt
Total Interest
Total Paid
Tax Savings
Effective Total Paid
Investment
Invested Time
Total Invested
Value Increase
Total Value
Taxes Paid
Effective End Value


All calculators are made available as self-help tools for your independent use with results based on information provided by the user. All examples are hypothetical and are for illustrative purposes only. Calculated results are believed to be accurate but results are not guaranteed. Debt calculators are intended only to provide comparisons that may assist you with making decisions regarding how to handle your debt. All debt obligations need to paid each month by their individual due dates. Check all statements from creditors carefully to make sure you pay at least the minimum stated on each. If you have serious debt problems, please seek the advice of a qualified professional who is fully aware of your individual circumstances.
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Updated 05 Jul 2007
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A title for these calculator results that will help you identify it if you have printed out several versions of the calculator.
The amount, in addition to your Debt Monthly Payment amount, you can pay each month toward your debt or investment.
Any cash you have available to be used as a lump sum payment toward your debt or as a lump sum deposit into 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 debts 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.
This box should be checked if the interest you are paying is tax deductible.
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.
This box should be checked if the investment earnings are reported on your yearly taxes.
You will make minimum payments on the debt and additional money will be invested for the entire length of the debt. No money will be withdrawn from the investment even when the investment can pay pay off the debt.
You will make minimum payments on the debt and additional money will be invested. Money will be withdrawn from the investment to pay off the debt as soon as the value in the investment is more than the debt balance.
All money will pay the debt until it is paid off, then all money will be invested.
Undefined
The number of years and months to pay off the debt using each strategy.
Total amount of interest you will pay on the 'Debt Balance'.
Total amount of principal ('Debt Balance') + interest you will pay while paying off the debt.
You will save this amount in taxes if the debt interest is tax deductible.
'Total Paid' minus 'Tax Savings' is effectively what the debt will cost you.
The number of years and months you will add money to your investment. Some strategies invest the entire time it takes to pay the debt.
The total money added to your investment over 'Invested Time'.
Also known as Return on Investment. Given the 'Anticipated Rate of Return', your investment will earn this amount during the time it takes to pay off the debt.
The investment value when the debt is paid. 'Starting Balance', 'Total Invested', and 'Value Increase' are included so the amount on an investment statement should be the same as this amount, assuming you did not withdraw money from the investment to pay taxes.
The amount you will pay in taxes on the 'Value Increase' amount.
The investment's 'Total Value' minus 'Taxes Paid' reflects the true value of your investment for comparison purposes. The actual balance of your investment as shown on a statement will probably be higher since it is assumed you did not withdraw money from the investment to pay taxes.
The effective value of the investment at the end of the debt term. This may not be the actual value of your investment as shown on a statement. For comparison purposes and determining which strategy is best, this value has been adjusted for tax savings due to tax deductible debt interest and taxes paid on investment earnings.
The recommended strategy always has the highest 'Effective After Tax Value', which is the investment value with tax savings added and taxes paid subtracted.
When checked, a section will appear below the calculator showing the complete amortization tables for all the strategies.
When checked, a section will appear below the calculator showing the complete amortization table.