Frame both sides after tax
Paying off a 20% card is a guaranteed 20% improvement on that balance. Investing might average higher over decades—but not guaranteed, and not on the same timeline.
Order of operations many planners use
- Budget and emergency fund.
- 401(k) to the match.
- High-interest consumer debt.
- Other goals split between extra debt paydown and investments.
Put numbers next to each other
Mistakes
- Investing while carrying revolving high-APR debt without a plan.
- Prepaying a 3% mortgage while forgoing decades of tax-advantaged growth without a reason.
Use the calculator
FAQ
- What about student loans?
Rate, forgiveness eligibility, and cash flow matter—treat as its own line item, not generic “debt.”