Debt
Debt Payoff Calculator
See exactly when a debt dies. Enter the balance, rate, and what you pay each month — then add an extra payment and watch months of payoff time and thousands in interest evaporate before your eyes.
Results
Debt-free in: 2 years 6 months, Total interest: $2,463.08, Total repayment: $10,463.08, Extra payment saves: $620.21 interest
- Debt-free in
- 2 years 6 months
- 30 monthly payments
- Total interest
- $2,463.08
- Total repayment
- $10,463.08
- Extra payment saves
- $620.21 interest
- 7 months sooner than paying the minimum
Balance at each year-end
| Year | Monthly payment | Balance | Progress |
|---|---|---|---|
| 1 | $350.00 | $5,298.30 | 60% left |
| 2 | $350.00 | $1,938.47 | 20% left |
| 3 | $313.08 | $0.00 | 0% left |
- Baseline without the extra payment: 3 years 1 month and $3,083.29 of interest.
- Interest accrues monthly on the unpaid balance (balance × APR ÷ 12); the final payment is adjusted to land the balance at exactly zero.
How to use this calculator
- Enter your current balance from your latest statement.
- Enter the APR exactly as your statement shows it (for credit cards, the "purchase APR" is usually right).
- Enter your planned monthly payment — anything above the minimum.
- Now add an extra amount you could realistically throw at the debt, even $50.
- Compare: the calculator shows both plans, the months saved, and the interest saved by the extra payment.
How the calculation works
monthly interest = balance × APR ÷ 12 principal paid = payment − monthly interest new balance = balance − principal paid
Each month, interest is charged on the remaining balance at APR/12, your payment covers it first, and whatever is left reduces the balance. The simulation repeats until the balance hits zero (with the final payment adjusted to land exactly there). Extra payments work because every dollar of principal you remove early never accrues interest again.
Worked example
Input
Credit card balance $8,000 at 22% APR. Paying $300/month, or $350/month with a $50 extra payment.
Result
At $300/month: debt-free in 37 months with $3,083 total interest. At $350/month: debt-free in 30 months with $2,463 interest — the extra $50 saves 7 months and about $620.
Assumptions and important notes
- Interest accrues monthly as balance × APR ÷ 12; actual credit card issuers usually compound daily on your average daily balance, which makes real costs slightly higher.
- Payments are made on the same day every month.
- No new purchases are added to the balance, and no fees (late fees, annual fees) are modeled.
- The payoff completes when the balance reaches zero; the final payment may be smaller than the others.
Frequently asked questions
Why does my statement say I’ll pay less interest than this calculator?
Two likely reasons. If you pay less than the minimum, the issuer’s own projection (if shown) assumes you keep making exactly the minimum as it declines — stretching payoff to decades. And this tool models monthly interest while card issuers compound daily, which produces slightly different totals. Treat both as close estimates.
Is it better to pay extra on this debt or on another one?
Mathematically, extra dollars always save the most on the highest APR debt — that is the "avalanche" method. The "snowball" method (smallest balance first) wins on psychology by delivering early wins. This calculator lets you test any single debt; run each one and compare the interest saved per extra dollar.
What if my payment is below the minimum?
The calculation still runs, but real-world consequences do not: below-minimum payments trigger late fees and penalty APRs (often 29.99%+), which would extend the timeline far beyond this projection. Always enter at least the required minimum.
How much does one extra payment per year help?
Roughly like adding 1/12 of your payment to every month. On the example debt above ($8,000 at 22%, $300/month), a single extra $300 payment once a year typically cuts several months off the schedule — set it as an annual "bonus" payment on top of the monthly amount you enter here.
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