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Loan vs Invest
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Tuition Fee Loan · Singapore Studies

Rate: ~4% p.a.
Interest-free during study ✓
Max tenure: 10 years for poly, 20 years for uni
Story: Are you an international student graudating with a ton of student debt and wondering whether to pay it off quickly or invest for the future? This tool can help you find the right balance based on your loan details, investment returns, and budget.
How it works: Each month, you split your payoff budget between repaying your loan and investing. The lower your loan rate compared to your investment returns, the more it can make sense to invest rather than rush to pay off debt.
1.Choose your loan type and set your monthly budget below.
2.Explorer — drag the slider to see how different loan/invest splits play out over time.
3.Optimal — find the split that pays off your loan fastest while still growing your portfolio.

Assumptions

Loan amountS$24,000

Poly only

Monthly budget
Investment return (% p.a.)7.0%
Loan interest rate4.50%

Allocation

% going to investments30%
Loan: S$420Invest: S$180
Loan paid off
5.4 yrs
(65 months)
Total interest paid
S$3,061
to the bank
Net worth at 10yr
S$58,121
portfolio − remaining loan
vs Debt-first at 10yr
+S$819
your split wins
Loan balance & portfolio over time
Loan balance
Portfolio
Net worth
Strategy comparison — net worth over time
Pay debt first
Invest first (min loan)
Your split

📊 Analysis

Your return (7%) beats the loan rate (4.5%) by 2.5%. Investing more wins mathematically. Your 30% invest split gives a 10-year net worth of S$58,121, which is S$819 ahead of paying debt first. See the Optimal Split tab to find your personal best allocation.