Am I better off paying down high-interest debt than putting that money into my trading account?
Enter the Debt and Time Horizon
Your Result
Fill in the fields on the left and click Calculate to compare.
How this is calculated
Paying down debt at a fixed APR is a guaranteed, risk-free result. Every dollar of interest avoided is a dollar you keep, with no market exposure involved.
Trading returns are never guaranteed the way debt payoff is, and trading carries costs and taxes this calculator does not include.
This shows the annualized return your trading account would need to clear just to match the debt payoff, not whether that return is likely.
This calculator does not know your full financial picture. It only compares the two numbers you entered.
Risk & liability disclaimer: This calculator performs simple compounding-interest arithmetic on the amount, APR, and time horizon you enter. It compares a guaranteed interest-avoidance figure to a required trading return benchmark, it does not predict or guarantee trading results and does not know your full financial situation. This is not financial or tax advice. Trading involves risk of loss and results are never guaranteed. Trading Habits is not a broker-dealer, registered investment adviser, lender, or tax professional. Speak with a qualified financial advisor about how to allocate money between debt payoff and any trading account.
Where the Money Comes From Matters as Much as How Much
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Compare this against other funding sources before deciding how to capitalize a trading account.