Skip to content
All articles
Engineering

Tech debt: when to pay it and when to let it ride

Not all tech debt is bad. Here's how to know when to fix it and when to ship anyway.

KSKaushal SharmaFounder & CTO · January 5, 2026 · 5 min read

Tech debt gets a bad rap. Every engineering blog wants you to believe that any shortcut is a cardinal sin that will doom your startup.

That's nonsense.

Tech debt is a tool. Like any tool, it can be used wisely or recklessly. The key is knowing the difference.

Good Debt vs. Bad Debt

Just like financial debt, tech debt comes in different flavors:

  • Strategic debt - Intentional shortcuts to hit a market window. You know exactly what you're trading off.
  • Tactical debt - Quick fixes to unblock shipping. Documented, planned to fix later.
  • Accidental debt - Shortcuts you didn't realize you were taking. Usually from inexperience.
  • Reckless debt - "We'll fix it later" without any plan. This is the killer.
The startup that ships with tech debt beats the startup that never ships because they're still refactoring.

When to Take on Debt

Take on tech debt when:

  • You're validating a hypothesis and the code might be thrown away anyway
  • There's a clear market window that won't wait for perfect code
  • The debt is isolated and won't spread to other parts of the system
  • You have a concrete plan to pay it back

When to Pay It Back

Pay back tech debt when:

  • It's slowing down every new feature you try to build
  • It's causing bugs that affect users
  • It's making onboarding new developers painful
  • You're about to build something major on top of the shaky foundation

The 20% Rule

Here's our rule of thumb: allocate 20% of every sprint to paying down tech debt. Not 0% (debt accumulates). Not 50% (you'll never ship). Twenty percent.

This keeps the codebase healthy without sacrificing velocity. It's the sustainable pace that lets you ship fast for years, not just months.

The Bottom Line

Tech debt isn't inherently bad. Unmanaged tech debt is bad. Know what debt you're taking on, why you're taking it on, and when you'll pay it back.

Then ship the damn thing.

Building something?

Let's talk about your MVP.

A free 30-minute call. No pitch, just honest advice.

Book a call

Like rocket fuel* for your startup

Stop dreaming. Start shipping.

Thirty days from now you're either live with real users, or still polishing a prototype. Every week you wait is runway burned with nothing to show an investor. One free call. No pitch. No pressure.

Accepting new projects*Side effects may include actual users, investor interest, and the ability to finally sleep at night.

P.S.

Still reading? Still skeptical? Good. You should be. That skepticism is probably what kept you from making bad decisions before. But the startup world moves fast, and your idea won't stay unique forever. So the question isn't should I build this? The question is when? And if the answer is "soon", click the button. Let's talk.