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Loan vs Investment Calculator

Compare paying off your loan faster against investing the extra cash — see which strategy builds more wealth by the end of your loan term.

How to use this tool

  • Enter your current loan balance, interest rate, and remaining term.
  • Set the extra monthly amount you can put to work.
  • Pick an investment return scenario or enter your own rate.
  • Compare the final portfolio value and breakeven month for each strategy.

Important disclaimer

  • Investment projections are illustrative — returns are not guaranteed.
  • Actual JSE or unit trust performance varies. Use Conservative (5%) for stress-testing.
  • This tool does not account for taxes, fees, or inflation.
  • Speak with a licensed Jamaican financial advisor before acting.

Loan Details

Amount you can direct at extra loan repayment OR investing each month.

Investment Return Assumption

Investment projections are illustrative and not guaranteed.

PreeLoan is an independent information service. Calculations are for illustrative purposes only and do not constitute financial advice. Investment return assumptions are not guaranteed. Always verify loan terms with your lender and consult a licensed financial professional.

Frequently Asked Questions

Should I pay off my loan early or invest in the JSE?

It depends on your loan interest rate versus your expected investment return. If your loan rate (e.g. 15–20%) is higher than your expected JSE return (~8%), paying off early usually saves more. This calculator shows you the breakeven point.

What is Strategy A vs Strategy B?

Strategy A invests your extra money every month while paying the normal loan schedule. Strategy B uses the extra to accelerate loan payoff, then redirects the freed-up payment into investments once the loan is cleared.

Are investment return projections guaranteed?

No. Return assumptions are illustrative only. Actual JSE or unit trust returns vary year to year. Use multiple scenarios (Conservative, Base, Optimistic) to stress-test your decision.

Does this account for taxes on investment gains?

No. Consult a licensed Jamaican financial advisor to understand applicable withholding taxes or capital gains treatment on your specific investment vehicle.