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Should You Pay Off Student Loans or Invest?

Use Larson Financial’s Student Loan vs. Investing Calculator to compare the potential impact of paying down debt versus investing over time. By analyzing interest rates, expected investment returns, time horizon, and contribution amounts, this tool helps you evaluate which strategy may better support your long-term financial goals. Whether you’re deciding how to allocate extra cash flow or balancing debt repayment with wealth building, gain clarity on one of the most common financial trade-offs.

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A Larson advisor will reach out to discuss your student loan strategy.

Best strategy —

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Student Loan vs. Invest Calculator

Find out whether paying off your loans or investing your extra cash builds more wealth.

Your loan details

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Investment & personal details

Strategy comparison — 20-year net worth

Aggressive payoff
Put all extra cash toward loans, then invest once debt-free
Net worth at year 20
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Debt-free: —
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Invest first
Pay minimums only, invest all extra cash immediately
Net worth at year 20
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Debt-free: —
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Hybrid (50/50)
Split extra cash equally between extra loan payments and investing
Net worth at year 20
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Debt-free: —
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Net worth comparison

Aggressive payoff
Invest first
Hybrid 50/50
Key numbers
Interest saved (aggressive vs minimum payments)—
Investment gains foregone (vs invest-first)—
After-tax effective loan rate—
Loan type consideration—
Best strategy for your situation—

Get a personalized payoff strategy from a Larson advisor

Student loan decisions are highly personal — income trajectory, forgiveness eligibility, employer match, and tax situation all factor in.

This calculator provides estimates for illustrative purposes only and does not constitute financial or legal advice. Results do not account for income-driven repayment plans, loan forgiveness tax implications, employer 401(k) matching, state taxes, or all aspects of your financial situation. Net worth figures are nominal (not inflation-adjusted). Student loan interest deductibility is subject to income phase-outs. Consult a qualified Larson financial advisor before making loan repayment or investment decisions. Larson Financial Holdings is a registered investment advisor.

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