See whether surplus should go toward debt or future wealth.
This tool compares the cost-saving benefit of faster repayment with the projected value of investing the same amount over the same time frame.
FAQ
Questions around debt prepayment versus investing.
Is prepayment always better?
No. It depends on the loan rate, expected return, liquidity needs and how comfortable the user is with market risk.
Why is loan saving called certain?
Because interest saved by prepayment is a known benefit, while investment return is still only a projection.
Can the right answer be a mix of both?
Yes. In many real situations, a split between debt reduction and investing is the more balanced path.