When you receive some extra money it may be difficult to determine whether you should invest the funds or use them to pay down debt. One financial theory suggests that if your after-tax return on investments is greater than the after-tax cost of your debt, you should invest. Use this calculator to help analyze a hypothetical situation.
The higher your income is, and the higher your debt it, the more complicated the situation can get. It might come to the point where you will need to work with a financial planner to double check your estimates and not make a crucial mistake.