Student Loan vs. Investing Calculator: Model Your 2026 Wealth Strategy
Should you kill your debt or grow your portfolio? This math-backed tool calculates your Effective Real Interest Rate, incorporating IRS tax shields and inflation to show the true net worth difference over 20 years.
The Break-Even Logic
The Break-Even Return is the “tipping point” where investing and debt payoff are mathematically equal.
Because student loan interest is often tax-deductible (up to $2,500), your effective interest rate is usually lower than the number on your monthly statement. If you can earn more in the market than this effective rate, investing historically wins.
How It Works
- Tax Shield: Automatically models the IRS student loan interest deduction.
- Real Dollars: Adjusts all future wealth projections for 2026 inflation rates.
- Opportunity Cost: Models exactly what happens if you invest the “extra” principal instead of paying down the loan.