Pay Off Debt or Invest?
Every debt payment is an investment with a guaranteed return equal to its rate. Enter yours and see which door the money should go through.
- Credit cards
- 22.15%
- Used-car loans
- 11.43%
- 30-year mortgage
- 6.71%
- New-car loans
- 6.39%
US averages, September 2026. Stocks since 1926: 10.47% before inflation, 7.29% after
Your money
After bills and your normal debt payments
Your debts
Minimum payment now: $185 a month (1% of the balance plus interest, so it shrinks as you pay).
Assumptions
Do you have one month of expenses saved?
Cash you could use for a surprise bill without borrowing.
Is your employer offering free retirement money you're not taking?
Some employers add money to your retirement plan when you put money in (a 401(k) match). Answer Yes if you're not putting in enough to get all of it.
Your plan
Put the $750 on Credit card first. It pays 22.15% guaranteed; the market's 8% is a hope.
- Send $750 a month to Credit card (22.15%). Paid off in month 9.
- Invest $935 a month at the 8% you expect.
How it plays out over 10 years
Home value is not counted.
Where you stand after 10 years
Savings minus what you still owe. Every plan keeps making the normal payments on your debts; this is where the extra $750 goes.
Email me this plan
The verdict, the steps, and a link that reopens these exact numbers.
How it decides
Paying a debt is a guaranteed return equal to its rate. Investing is an expected return that some years is negative. So a debt at or above the return you expect gets paid first, no contest.
A debt within three points below your expected return is a toss-up. The market's average edge is small, and it is not guaranteed. Splitting the money is a fine answer; paying the debt is fine too if the guaranteed return lets you sleep.
Two things come before either: one month of expenses in cash, so a surprise doesn't go back on the card, and any employer match you are leaving on the table, which is an instant 50% to 100% return.