Debt Payoff Calculator
Calculate your payoff timeline and total interest for any debt, and see the impact of extra payments.
The payoff date is what makes debt feel real. Abstract numbers like interest rate and balance are less motivating than a specific month in a specific year when the debt is gone. Running this calculator and circling that date on a calendar is a meaningful first step in actually eliminating debt.
If your monthly payment is lower than the monthly interest charge, you will never pay off the debt. The payment must exceed the interest accrued each month for the balance to decrease. Check: balance times (APR divided by 12) equals your monthly interest charge.
How the calculation works
Each month, interest accrues on the outstanding balance. The payment covers that interest first; the remainder reduces principal. As the balance falls, the interest portion shrinks and more of the fixed payment goes to principal. This accelerating paydown is why the final months of a debt feel fast and the early months feel slow.
The minimum payment trap
Minimum payments on most consumer debt are set near the monthly interest charge, ensuring the balance decreases only slowly. On a $10,000 balance at 20% APR with a $250 minimum payment, roughly $167 goes to interest and only $83 reduces the balance. Paying double the minimum cuts the total interest paid by more than half on most consumer debts.
Debt prioritization
If you have multiple debts, the avalanche method (highest interest rate first) minimizes total interest paid. The snowball method (smallest balance first) provides faster early wins that improve motivation and habit formation. Both work, and the best one is whichever you actually follow through on.
Frequently asked questions
What if I cannot afford more than the minimum payment?
Even a small increase above the minimum, applied consistently, makes a meaningful difference. Adding $25/month to a $10,000 debt at 20% APR cuts payoff time by years. Start with whatever is possible and increase as other expenses reduce.
Should I use savings to pay off debt?
If the debt rate exceeds the after-tax return you expect on savings, paying off debt is the better financial decision. A 20% credit card rate is a guaranteed 20% return for every dollar applied to that balance. Unless you have an investment opportunity paying more than 20% guaranteed, paying the debt wins mathematically.