Do the Math: Pay Off My Loan or Save More for Retirement?

December 18, 2018

About this calculator

This calculator provides a general estimate of your future retirement account value and is not intended to be investment advice. These estimates are hypothetical and for illustrative purposes only. They are not intended to be a projection of future values. Investments are subject to market risk and fluctuate in value.

Assumptions

  • Annual return on retirement account investments: 8%.
  • Annual wage growth: 2%, starting in the second year of the calculation.
  • Additional loan payments apply to the principal and begin in the first year of the calculation.
  • You increase the the amount you pay each month (for either the loan or for retirement) by 0.75% annually.
  • The amount you save for retirement increases annually until it reaches the IRS limit. 
  • All retirement account calculations are pre-tax and are presented in today’s dollars.

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