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Are you better off paying down debt or investing?

Pay off what you owe, or invest the money and let it grow? This online tool may help.

If you have some extra funds and you’re wondering if it’s better to pay off your existing debt or invest that amount, our calculator can help you with that decision. Enter the amount you owe, the interest rate for both your existing loan and a saving rate you could receive, along with the extra amount you have. After the calculation, we’ll show results for how quickly the existing loan could be paid off versus how much you could save.

Payoff debt vs. investing

All fields are required. If something doesn't apply, place a 0 in the field.

Calculations

Original loan payment
$0
New loan payment
$0
New number of payments remaining
0

Debt

Total original debt payment
$0
Total new debt payment
$0
Total interest saved
$0

Savings

If you invest the amount saved monthly

Total deposit
$0
Future value
$0
Earnings
$0

If more is paid on loan

Total deposit
$0
Future value
$0
Earnings
$0
By increasing your loan payment by $xxx per month you could save $xxx in interest and payoff the loan in xxx months.
During those same xxx months, you could earn $xxx in interest if you saved.
By contributing $xxx more per month you could earn $xxx in interest over xxx months. During that same time, you would pay $xxx in interest on the debt.

Neither State Farm® nor its agents provide tax or legal advice. This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. Please consult your own adviser regarding your particular circumstances.




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