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Investment vs Student Loan Overpayment Calculator

Should you invest extra money or use it to overpay your student loan? Compare the potential returns to make the best financial decision.

Important Considerations

This calculator provides estimates only. Consider your personal circumstances, emergency fund, and risk tolerance. Seek professional financial advice for complex situations.

£

How much extra money do you have available each month?

£

Used to calculate your current loan repayments

£

How long do you plan to invest/overpay for?

Custom Expected Return
%

Historical stock market average is around 7-8% annually

📈 Recommendation: Invest

Investment Growth (after 10 years):£8,940
Loan Interest Saved:£0
Net Benefit of Investing:+£8,940

Detailed Breakdown

Investment Scenario

Monthly investment:£200
Total invested:£24,000
Expected return:6.0%/year
Final value:£32,940
Total gain:£8,940

Overpayment Scenario

Monthly overpayment:£200
Total overpaid:£24,000
Loan interest rate:6.7%
Interest saved:£0
Plus early payoff benefits

Your Plan 2 Loan

Threshold: £27,295
Current repayment: £58/month
Interest rate: 6.7%
Write-off: 30 years after graduation

Related Calculators

Investment vs Student Loan Overpayment: Making the Right Choice

Deciding whether to invest extra money or use it to overpay your student loan is one of the most common financial dilemmas for graduates. This calculator helps you compare the potential outcomes of both strategies.

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