Pay Off Debt or Invest?
I have extra money each month. Should it go to my debt or into investments?
A side-by-side model of two common strategies for the same monthly budget. Enter your own debt and return assumptions to see which path leaves you with more net worth — and how sensitive that answer is.
Balance, APR and the required minimum.
Extra money and the return you expect.
Net worth, interest and crossover year.
Prepared by the Wealthton Editorial Team under our editorial policy. Last reviewed: October 5, 2026.
What this decision compares
Both scenarios spend exactly the same amount every month: the required minimum plus your extra money. Scenario A sends everything to the debt until it is gone and then invests the full amount. Scenario B pays only the minimum and invests the extra from the first month. Because the budget is identical, the difference in net worth (investments minus remaining debt) isolates the effect of the choice itself.
How to read the result
Debt interest is a certain cost; investment returns are not. A 19% credit card is effectively a guaranteed 19% return when repaid, while a 7% market return is an average with large year-to-year swings. When the two rates are close, the model may show a small advantage either way — treat close results as a tie and weigh liquidity, stress and employer matching instead.
What the model does not include
It does not model taxes, employer retirement matches, tax-deductible interest (such as some student or mortgage interest), variable rates, missed payments, fees, or the risk of a poor sequence of market returns. It also assumes you keep the same monthly budget for the whole period. If you have an employer match, that free money often changes the answer and is worth testing separately.
Change one thing
Under the results, each card changes a single input and keeps everything else fixed, then shows how far the main result moves. Use Apply this change to adopt it, or Pin as baseline first so the page lists what you changed and the effect. Copy shareable link saves only the inputs in the link (after the #), which is never sent to our server.
Your inputs vs calculated results
Every number in the left-hand form is an assumption you control. The verdict, scenario cards and the results-over-time table are calculated from those inputs only. Fixed model assumptions are listed under the results so you can see exactly what is not coming from you. Inputs outside a sensible range are limited and flagged rather than silently changed.
Check the numbers elsewhere
For more detail on the same scenario, use the Debt Payoff Calculator. For background on the trade-offs, read the Debt payoff guide and Case study: pay off debt or invest. Our calculator methodology explains how Wealthton models are built and checked.
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How Much More Should I Contribute? — How much difference does raising my monthly investment contribution actually make?
This is an educational scenario model, not personalized financial advice. Results depend entirely on the assumptions entered. See our disclosures, or contact us if you spot an error.