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Decision reportDecision summary
Pay Extra or Invest Calculator
Pay extra is favoured because the risk-adjusted after-tax return is 4.3% versus a debt rate of 6.2%.
Decision index
Pay extra
Risk-adjusted recommendation
Key figures
Interest saved
$109,484Investment outcome
$161,150After-tax return
5.3%Risk-adjusted return
4.3%Findings snapshot
What deserves attention first
These signals are the strongest points to review before relying on the result.
Debt reduction wins on a risk-adjusted basis in this scenario.
Higher risk tolerance makes the investment case easier to justify.
Liquidity, redraw access, and tax rules can change the practical decision even when the maths looks clear.
Status mix
Metric health
Green is healthier, yellow needs monitoring, and red needs action.
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Decision reportMetric dashboard
Relative strength of the main numbers
These bars compare the largest numeric signals in this report. Each value keeps its own unit, so use the chart as a visual guide rather than a like-for-like financial comparison.
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Decision reportMetric notes
What each result means
Each row explains the result in practical language and highlights whether it is healthy, worth watching, or needs action.
Interest saved
$109,484HealthyEstimated interest avoided by making the extra repayments. This shows the longer-term cost, not just the monthly or short-term impact. Against the other key figures in this report, it is marked healthy.
Investment outcome
$161,150HealthyEstimated after-tax investment balance over the accelerated payoff period. This helps compare the potential reward with the risk and time involved. Against the other key figures in this report, it is marked healthy.
After-tax return
5.3%WatchExpected return after applying the entered tax rate. This helps compare the potential reward with the risk and time involved. Against the other key figures in this report, it is marked watch.
Risk-adjusted return
4.3%ActionAfter-tax return reduced by a simple risk preference penalty. This helps compare the potential reward with the risk and time involved. Against the other key figures in this report, it is marked action.
Payoff time saved
7 years 2 monthsHealthyHow much sooner the debt could be cleared with extra repayments. This estimates the benefit if the entered plan is followed. Against the other key figures in this report, it is marked healthy.
Investment vs debt edge
$51,666HealthyPositive favours investing before behaviour and liquidity factors. This shows how much existing debt is affecting the result. It is marked healthy based on the entered assumptions.
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Decision reportFindings
Plain-English interpretation
These findings translate the numbers into decision points.
Debt reduction wins on a risk-adjusted basis in this scenario.
Higher risk tolerance makes the investment case easier to justify.
Liquidity, redraw access, and tax rules can change the practical decision even when the maths looks clear.
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Decision reportAction plan
What to do next
Recommended actions are based on the strongest signals in the result. Use them to decide what to check, change, or confirm.
Action 1
Prioritise debt pressure
- What it means
- Debt reduction wins on a risk-adjusted basis in this scenario. Read this together with Interest saved ($109,484) to see what is driving the result.
- Why it matters
- Estimated interest avoided by making the extra repayments. This shows the longer-term cost, not just the monthly or short-term impact.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Interest saved: $109,484; Investment outcome: $161,150; After-tax return: 5.3%
Action 2
Reduce pressure before committing
- What it means
- Higher risk tolerance makes the investment case easier to justify. Read this together with Investment outcome ($161,150) to see what is driving the result.
- Why it matters
- Estimated after-tax investment balance over the accelerated payoff period. This helps compare the potential reward with the risk and time involved.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Interest saved: $109,484; Investment outcome: $161,150; After-tax return: 5.3%
Action 3
Review decision signal 3
- What it means
- Liquidity, redraw access, and tax rules can change the practical decision even when the maths looks clear. Read this together with After-tax return (5.3%) to see what is driving the result.
- Why it matters
- Expected return after applying the entered tax rate. This helps compare the potential reward with the risk and time involved.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Interest saved: $109,484; Investment outcome: $161,150; After-tax return: 5.3%
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Decision reportScenario inputs
Values used in the calculation
These inputs are the basis of the report. If any value changes, regenerate the report before relying on the result.
Loan balance
Current loan or debt balance.$360,000Loan interest rate
Annual interest rate on the debt.6.20%Remaining term
Remaining loan term.22 yearsExtra monthly amount
Money available each month for debt or investing.$600Expected investment return
Expected annual pre-tax investment return.7.50%Include tax adjustment
Choose whether investment returns should be adjusted for tax.YesTax rate
Marginal tax rate applied to investment returns.30.00%Risk preference
How much uncertainty you are willing to accept.BalancedAssumptions
How to read the result
- The debt path compares standard repayment against adding the extra monthly amount.
- Investment returns are adjusted for tax and risk preference.
- The recommendation is directional and should be reviewed against personal risk tolerance.
Professional note
Before acting
This report is a decision-support summary based on the assumptions entered. It is not financial, tax, lending, or legal advice. Confirm product terms, fees, tax treatment, and policy settings before making a financial commitment.
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Decision reportTerms explained
Key terms used in this report
These definitions explain finance terms and strategies that appear in the result.
Risk-adjusted return
An investment return reduced for risk preference. It helps compare a less certain investment outcome with the more certain benefit of reducing debt.
After-tax return
The expected investment return after tax is considered. It is usually more useful than the headline return when comparing investing with paying down debt.
Gross margin
Profit as a percentage of the selling price. It is different from markup, which compares profit with cost.
BAS
Business Activity Statement. Australian businesses use it to report GST and other obligations to the ATO.