Compare paying off your HELP/HECS debt early vs investing your extra cash. See which strategy saves you more money with CPI indexation and investment returns modelled.
CPI-indexed onlyRisk-free vs investedAfter-tax comparison
01 —INPUTS
Expected annual return if you invested instead.
02 —RESULTS
Pay Extra
6 years
to repay
Invest Instead
12 years
to repay
Net benefit-30,427.87
Years saved by paying extra6.0 years
Indexation saved5,275.34
Investment growth if invested95,703.21
Investing is better by 30,427.87. Your investment returns would outpace the indexation you save.
View full comparison
Pay Extra
Compulsory: 19,053.88
Voluntary: 25,000.00
Indexation: 4,053.88
Total: 44,053.88
Invest Instead
Compulsory: 49,329.23
Voluntary: 0.00
Indexation: 9,329.23
Total: 49,329.23
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How to think about this decision
HELP debt is the cheapest debt you will ever have — it is only indexed to CPI and does not accrue interest. This means the financial case for voluntary repayments depends entirely on whether CPI indexation is higher or lower than what you could earn by investing the money instead.
Generally, long-term investment returns (7–9% for shares) outpace CPI (2–4%), making investing the better mathematical choice. But paying off debt is risk-free and gives you peace of mind. This calculator lets you model both scenarios so you can make an informed decision based on your own numbers.
Should I pay off my HELP debt or invest the money instead?
It depends on the comparison between the CPI indexation rate on your HELP debt and the after-tax return you can earn by investing. HELP debt only grows at the CPI rate (historically 2–4% annually), which is usually lower than long-term investment returns (7–9% for shares). However, paying off debt is risk-free, while investments carry risk. This calculator models both scenarios side by side so you can see the net benefit.
What investment return would I need to beat HELP indexation?
Since HELP indexation is roughly 2–4% (based on CPI), any after-tax investment return above that rate makes investing the better financial choice on paper. Historically, Australian shares have returned around 7–9% p.a. over the long term, well above CPI. However, remember that investments carry risk and returns are not guaranteed, while paying off debt gives you a guaranteed saving equal to the indexation rate.
Is the 5% upfront repayment bonus still available?
No. The Australian Government removed the 5% upfront repayment bonus for HELP debts from 1 January 2017. There is also no longer a 10% bonus for voluntary repayments above $500. Without these incentives, the purely financial case for voluntary HELP repayments is weaker — which makes the invest-vs-repay comparison even more important.