Should I Pay Down Debt Or Invest My Monthly Surplus?

When you have some surplus cash on hand, it is sometimes difficult to determine whether you should use it for investment purposes or pay down your debt. If your after-tax return on investments is more than your after-tax cost of debt, it is probably better to invest. Just remember to consider the nature of risk behind the investment you choose (i.e., you may lose the money you invest, but you may still have financial obligations to pay back the liability). Use this calculator to help analyze your current situation.