Should I pay off debt or invest?
Run the numbers.
Compare your effective debt cost against expected investment returns to see which move wins.
The question it answersIs my debt rate high enough that paying it off beats investing?
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Looking for something close? Debt Payoff Calculator: several debts: avalanche versus snowball versus investing the extra, over ten years. Credit Card Payoff Calculator: one card: how long the minimum payment takes and what an extra payment saves.
| Scenario | Return | Eff. Debt Rate | SpreadSpreadThe gap between two prices or rates. In trading, it is the difference between the price buyers pay (ask) and the price sellers get (bid). Many Bitcoin apps and money-transfer services also build a markup into the price they quote you, a cost on top of the advertised fee even when that fee is $0.Full definition | Verdict |
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How this is calculated
If your interest is tax-deductible, the effective debt rate = APR × (1 − marginal tax rate). Otherwise, the effective rate equals the APR.
The tool compares that effective rate against your expected return. If the effective debt rate is greater than the expected return, paying off debt first is the higher-EVExpected Value (EV)The probability-weighted average outcome of a bet or decision. Positive EV means the average outcome is profitable, but any single trial can still lose. In mining: your expected blocks times block value minus your cost. move. If returns exceed the debt rate, investing wins on paper, but the spread matters.
The scenario table shows bear (return − 2%), base, and bull (return + 3%) cases so you can see how sensitive the decision is.
Projection, not a promise. The result follows the assumptions you enter. Real results will differ, sometimes by a lot.
Where to go from here
Last updated . Calculators are educational estimates, not financial advice. Verify · Pairs with /debt-types/ · Disclosures · How pages are reviewed