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# Student Loan Payoff vs. Invest Calculator

It’s an age-old question: Should you pay off your student loans or invest? The simplest answer is if your student loan debt has a higher interest rate than your expected return on investment, pay down your student loans first. If your investment earns a higher rate than your student loans will cost in interest, invest.

Many other variables, such as tax deductions and employer investment matching programs play into this equation. Use the Student Loan Payoff or Invest Calculator below to determine your repayment strategy.

## Step 3: Extra

### Monthly payment

On the other hand, if you decided to invest the extra \$317 per month for , here are your results:

– yr years after you finish contributing. You can see the long term results below:

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

## Student Loan Payoff vs. Invest Calculator FAQs

#### 1. Should I take the calculations from the Student Loan Payoff vs. Invest Calculator and apply them directly to my financial situation?

No. The calculations here are for estimation purposes only. It s important to note that this calculator in particular also factors in a lot of assumptions that may not hold true, such as annual expected return on investments as well as long-term tax rates. Additionally, there are other factors that this calculator cannot account for. As always, we recommend consulting a finance or tax professional when it comes to making your own financial decisions.

#### 2. What value do I use for the Extra Money Payment Amount field?

This calculator assumes that you have extra money left over each month after you pay your monthly student loan bill. Enter the amount you have left over in the Extra Money Payment Amount, field. The calculator will then calculate where it may be best for you to apply this money (towards your student loans or an investment account).

If you do not have any money left over in your budget after paying your student loans, this calculator will not be helpful to you.

#### 3. How do I make extra payments on my student loans and make sure the payments are applied correctly?

Check out this blog post to find out.

#### 4. If I want to invest my money, how and where can I do that?

You can check out various investment options with our partners in the Student Loan Hero Marketplace.

1. Prepaying student loans may be better than investing.
2. Investing may be better than prepaying student loans.