What to do with excess cash?
Pay off debt or invest in the stock market?
When people have some extra cash, they often ask themselves "Should I invest this cash or should I use it to pay off my debts?" The answer to this question is fairly simple - which option is most likely to pay you more?
The average annual return on investing in the stock market has been about 10% over the past century. Therefore, you may want to invest in the stock market if the annual cost of your debt is less than 10% of what you owe. Vice versa if you believe the annual cost of your debt will be greater than 10%.
Use our calculator to find out!