Debt payoff order
List your debts and compare smallest balance first with highest interest first. See your debt-free date and the interest each plan saves. Free and private.
Loan interest saved
$5,120
months shaved off loan
Example calculation
Yes, pay off loan early
Loading calculation...
After-tax loan APR
5.09%
guaranteed return
Debt-free in
60 mos
with extra payments
Net wealth difference
+$1,200
at original payoff dateSide-by-side breakdown
| Metric | Pay off loan early | Invest extra monthly |
|---|
Sensitivity to investment return
How after-tax wealth at the original loan payoff date shifts with market returns:
| Annual return | Payoff-first wealth | Invest-first wealth | Payoff net advantage |
|---|
Frequently asked questions
What student loan interest rate is high enough to prioritize paying off early?
As a rule of thumb, student loans above 6% APR offer a guaranteed, risk-free return that is hard to beat in a taxable brokerage account after capital gains taxes. Loans below 4.5% APR usually favor investing once you have an emergency fund and full 401(k) match.
Should I get my employer 401(k) match before paying extra on student loans?
Yes. An employer 401(k) match is an immediate 50% to 100% return on your contribution, which beats any student loan interest rate. Always capture the full employer match before making extra student loan principal payments.
How does the IRS student loan interest deduction change the math?
If your modified adjusted gross income is below the IRS phase-out limit, you can deduct up to $2,500 of student loan interest each year even without itemizing. At a 22% marginal tax rate, that reduces a 6.5% interest rate to roughly 5.1% after tax on the covered interest.
What happens after the student loan is paid off early in this calculator?
To keep total monthly cash outflow identical between both choices, once the accelerated loan reaches $0, the calculator redirects your entire former loan payment plus the extra monthly amount into investments for the remaining months.
Benchmark sources and dates
Starting assumptions are example benchmarks, not binding quotes. Change any input to match your own bills or offers.
| Assumption / Input | Starting value | Source | Checked |
|---|---|---|---|
| Student loan balance | $32,000 | Federal Student Aid Data Center Portfolio Summary | 2026-10-12 |
| Student loan interest rate | 6.53% | Federal Student Aid Interest Rates and Fees | 2026-10-12 |
| Student loan interest tax deduction | Up to $2,500/yr | Internal Revenue Service Topic No. 456 Student Loan Interest Deduction | 2026-10-12 |
| Expected investment return | 7.5% | S&P Dow Jones Indices U.S. Equities Benchmark | 2026-10-12 |