Debt Payoff Calculator
See exactly when you'll be debt-free. Enter your balance, interest rate, and monthly payment. Add extra payments to see how much time and money you can save.
How to Use
1
Enter your current debt balance.
2
Enter the annual interest rate (APR).
3
Enter your minimum monthly payment.
4
Optionally, add any extra monthly payment you can afford.
5
Click Calculate to see your payoff timeline.
Formula
Monthly Interest
Balance × (APR / 12 / 100)
Principal Payment
Monthly Payment − Interest
New Balance
Previous Balance − Principal Payment
Example: $5,000 credit card at 18.99% APR
With minimum payments of $150/month, it takes 4 years 4 months and costs $2,756 in interest ($7,756 total). Adding just $50/month extra cuts it to 2 years 11 months and saves $1,048 in interest! That's 1 year 5 months faster and $1,048 back in your pocket.
Why It Matters
Credit card debt is one of the most expensive forms of debt. At 18.99% APR, you pay more in interest than many investments earn. Every dollar of extra payment goes directly to reducing your principal, which reduces future interest charges — creating a snowball effect. Even small extra payments can save thousands and years off your debt.
Who Uses This Calculator?
- • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
- • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
- • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method (popularized by Dave Ramsey) focuses on paying off your smallest debt first while making minimums on others. Once the smallest is paid off, roll that payment into the next smallest. This creates psychological wins and momentum.
What is the debt avalanche method?
The debt avalanche method focuses on paying off the highest-interest debt first. This saves the most money mathematically, but may take longer to see results. Choose snowball for motivation, avalanche for math.
Should I pay off debt or invest?
If your debt interest rate is higher than expected investment returns (typically 7-10%), pay off debt first. Credit card debt at 18%+ should always be paid off before investing. Employer 401k match is the exception — always get the match.
Is minimum payment enough?
Minimum payments keep your account current but barely reduce the principal. On a $5,000 balance at 19% APR, minimum payments ($100/month) take over 9 years to pay off and cost $5,840 in interest — more than the original balance!
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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.