Debt Payoff Calculator
Find out exactly how long it will take to pay off your debt and how much interest you will pay in total. Works for credit cards, personal loans, car loans and more.
Debt payoff strategies
Pay minimums on all debts, then put extra money toward the highest-interest debt. Mathematically optimal — saves the most interest.
Pay minimums on all debts, then put extra money toward the smallest balance. Psychologically motivating — builds momentum.
How to Pay Off Debt Faster
The total interest you pay on a debt depends on three factors: the interest rate, the outstanding balance, and how long it takes to pay off. Increasing your monthly payment — even slightly — can dramatically reduce both the payoff time and total interest paid.
The power of extra payments
On an $8,500 credit card balance at 19.9% APR, paying the minimum (around $170/month) would take over 10 years and cost more than $12,000 in interest — more than you originally borrowed. Paying $400/month instead cuts the time to 2.5 years and saves nearly $10,000 in interest. This calculator shows you exactly how much each payment amount costs you over time.
Frequently Asked Questions
What happens if I only pay the minimum on a credit card?
Minimum payments on credit cards are typically 1–3% of the outstanding balance or a small fixed amount (e.g. $25), whichever is greater. At high interest rates (18–24% APR), most of the minimum payment goes toward interest rather than principal. This means the balance decreases very slowly. A $5,000 credit card balance at 20% APR with minimum-only payments can take over 15 years to pay off and cost $5,000+ in interest — doubling your cost.
Should I use the avalanche or snowball method?
The avalanche method (highest interest first) is mathematically optimal and saves the most money. The snowball method (smallest balance first) is psychologically motivating and may help you stay on track if you need early wins. Research by Harvard Business School found that the snowball method is often more effective in practice because the psychological reinforcement keeps people engaged. Choose the approach you are most likely to stick with.
Is debt consolidation a good idea?
Debt consolidation combines multiple debts into a single loan, ideally at a lower interest rate. It can reduce your monthly payment and total interest paid if you qualify for a significantly lower rate. However, it is not a solution if the underlying spending habits that created the debt are not addressed. Watch for consolidation loans with long terms — a lower rate over a longer period may cost more in total interest than your current debts.