Which use of a spare dollar wins.
Repay the debt
$1,006 better
Investing nets
$3,351
With these inputs, repay the debt comes to $1,006 better over 5 years. Investing nets works out to $3,351. The result assumes debt interest rate stays at 7.5%.
| Input | −10% | Now | +10% |
|---|---|---|---|
| Spare cash | $905 better | $1,006 better | $1,106 better |
| Debt interest rate | $512 better | $1,006 better | $1,513 better |
| Investment return | $1,376 better | $1,006 better | $626 better |
| Tax on returns | $939 better | $1,006 better | $1,072 better |
| Years | $876 better | $1,006 better | $1,143 better |
Save this set of inputs, change something, then save again to compare the outcomes side by side.
Which use of a spare dollar wins.
With the defaults above, repay the debt works out at $1,006 better.