Pay Down Debt or Invest?

Should you pay down or invest if you have extra money?
Alberta
Taxable income (maximum value $1,000,000)
75,000
Info
Debt
Interest rate on debt (maximum value %)
7.99%
X
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After-tax cost of debt
7.99%
Investment
Rate of return (maximum value %)
6.00%
X
Input Error: Rate of return
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Rate of return breakdown: Info

Interest
33.33%
Eligible dividends
33.33%
Capital Gains
33.40%
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The percentage figures for interest, dividends and capital gains do not add up to 100%. Please correct your entries.
After-tax rate of return
6.00%
Pay down debt
After-Tax Cost of Debt
After-Tax Rate of Return

 
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Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.


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