Calculate Whether You Should Invest or Pay Off Your Loan Faster

Let’s say you’ve got low-interest debt, maybe a student loan, and you’re easily making your minimum monthly payment. If you’ve got the extra cash, what’s the smarter financial move: pay your loan off early or invest the money instead? The answer depends on a number of variables, and Student Loan Hero has a handy calculator to help you figure it all out.

We’ve told you how to balance your debt goals with your retirement goal. Two things are certain: first, you want to take advantage of your employer’s 401(k) match, if they offer one. Second, you should pay off any high-interest debt before you even think about investing. Obviously, the cash you’re wasting on interest outweighs the average return you’ll get from the market. We even gave you a rule of thumb: if the debt is less than 6%, consider investing. http://ift.tt/1TqjI2w...

But rules of thumb are general, and they don’t account for other variables. Student Loan Hero’s calculator offers more customized feedback to make your decision. Just plug in details about your loan situation: how much extra you have to throw at your loan each month, what your tax rate is, what your loan balance is, and so on. From there, hit calculate, and you’ll find out which makes more mathematical sense: prepaying your loan or investing.

The calculator will also show you a chart, breaking down the month-by-month numbers. Check it out for yourself at the link below, and check out the rest of their calculators here.

Student Loan Payoff Vs. Invest Calculator | Student Loan Hero

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