Should I pay off debt or invest in savings?
Inputs Next Steps

Amount you owe
$
Rate you pay on debt
%
Term of debt
Monthly amount you can save
$
Rate you earn on savings
%
Federal & state tax rate
%

This tool helps you determine if paying off debt or investing the same amount is the better financial decision.


When you pay off debt, you eliminate interest expense. During the time you make debt payments, you sacrifice interest income that you could have earned if you had invested the same amount. However, once you pay off the debt, you can begin to earn interest income on the money you would have spent each month on debt payments.

Note: This tool is not appropriate for decisions regarding home loans or investment loans. It is intended for decisions regarding credit card, auto, and other personal loans.
Leadfusion CALCULATORS: Budgeting Email Results

The Northwestern Mutual Life Insurance Company, 720 E. Wisconsin Avenue, Milwaukee, Wisconsin, 53202-4797.

The calculators are provided by a third party service provider, Leadfusion, Inc. The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed by Northwestern Mutual. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Northwestern Mutual, its affiliates or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation.

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