Stop Guessing.
Calculate Your Real Spread.
Most financial advice ignores tax-drag. Savings accounts and stock dividends lose up to 40% of their growth to federal and state brackets. This calculator reveals the mathematically correct path.
Tax Bracket Analysis
Enter your ordinary income and state preset. We parse your AGI to apply federal ordinary, capital gains, and NIIT rates.
True Cost of Debt
Input your debt rate. If it's a student loan or mortgage, we'll factor in itemization caps and interest deductions.
Verdict Centerpiece
View your guaranteed payoff spread compared side-by-side with 5 major tax-sheltered and taxable asset classes.
OBBBA car loan deduction is only allowed on US-assembled vehicles.
Guaranteed Early payoff beats HYSA / CD by 1.79% Spread
Math strongly favors paying off your car_loan debt. Doing so guarantees an effective, tax-free return of 4.68%, beating the tax-adjusted investment yield of 2.89% by 1.79%.
*Estimates only. Not financial or tax advice. View full disclaimers below.*
| Asset Class | Nominal | Fed Drag | State Drag | After-Tax | Spread vs Debt |
|---|---|---|---|---|---|
| 🎯 Payoff CAR LOAN | 6.00% | - | - | 4.68% | (Guaranteed) |
| HYSA / CD | 4.00% | 22.0% | 5.9% | 2.89% | -1.79% |
| T-Bills (3-Mo) | 4.15% | 22.0% | 0.0% | 3.24% | -1.44% |
| Taxable Stocks | 8.00% | 0.9% | 0.0% | 6.92% | +2.24% |
| Roth / HSA | 8.00% | 0.0% | 0.0% | 8.00% | +3.32% |
| Traditional IRA | 8.00% | 34.2% | 9.1% | 4.53% | -0.15% |
Stocks assume an index fund compounding over 10 years with a 1.3% qualified dividend drag, capital gains deferred until sale. T-Bills are state tax exempt. Debt payoffs yield a guaranteed return.