HisabCalc › Loans & cards

Debt vs Invest Calculator

Compare paying down a loan early against investing the same money, using the two interest rates.

Enter your numbers

Amount

Example: 100000

Debt rate (%)

Example: 12

Investment return (%)

Example: 10

Years

Example: 5

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

১) ঋণ আগে শোধ করলে সুদ সাশ্রয়: interestSavedByPayingDebt = amount × ((1 + debtRate/100)^years − 1). ২) একই টাকা বিনিয়োগ করলে লাভ: investmentGain = amount × ((1 + investRate/100)^years − 1). ৩) নিট সুবিধা: netAdvantage = investmentGain − interestSavedByPayingDebt (ধনাত্মক হলে বিনিয়োগ ভালো).

How the calculation works

Paying the debt early saves the interest the money would otherwise have cost, and investing it earns the return instead.

Both sides are compounded over the same years, so the comparison is like for like.

The net advantage is the investment gain minus the interest saved, so a positive figure means investing came out ahead.

Common mistakes

Comparing a guaranteed debt saving with an uncertain investment return, when the debt side carries no market risk.
Forgetting tax on investment gains, which narrows or flips the advantage shown here.

When to use it

Use it when you have spare cash and are deciding between clearing a loan and investing it.
It is not advice on market risk; the debt side is certain and the investment side is not.

Worked example

With 100,000 over 5 years, clearing a 12% loan saves 76,234.17 in interest while investing at 10% earns 61,051, so paying the debt is ahead by 15,183.17.

Interest saved by paying debt 76,234.17

Investment gain 61,051.00

Net advantage -15,183.17

Common questions

What does a negative net advantage mean?

It means paying off the debt wins, because the interest you avoid is larger than the investment gain.

Is the investment gain guaranteed?

No, it assumes a steady return, while loan interest is certain, so treat the investment side as a best case.

Last updated: 2026-10-04