Debt Payoff Calculator
This calculator shows how long it takes to clear a debt at a fixed monthly payment, and what the delay costs. Enter the balance, the interest rate (APR) and your monthly payment to see the payoff time, your debt-free date, and the total interest you will pay.
It works for credit cards, personal loans, car loans, buy-now-pay-later balances and any other debt with a running interest rate. It is most revealing for credit cards, where minimum payments are designed to keep you paying for years.
How debt payoff time is calculated
Each month, interest is added to the balance, then your payment is subtracted:
Monthly interest = Balance × (APR ÷ 12 ÷ 100)
New balance = Balance + Monthly interest − Payment
The calculator repeats this until the balance hits zero, counting the months and totalling the interest. If your payment is less than the first month's interest, the balance grows every month and the debt never clears. The calculator warns you and shows the minimum payment that makes progress.
Worked example
A credit card balance of $5,000 at 22% APR:
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $150 | 4 years 4 months | ≈ $2,800 |
| $200 | 2 years 10 months | ≈ $1,750 |
| $300 | 1 year 9 months | ≈ $1,020 |
Raising the payment from $150 to $300 cuts the interest bill by about $1,780 and brings the debt-free date forward by more than two and a half years. At these rates, extra payments earn a guaranteed 22% "return", which is hard to beat anywhere else.
Snowball vs avalanche: paying off several debts
With multiple debts, pay the minimum on all of them and aim any extra money at one target. The avalanche method targets the highest interest rate first, which minimizes total interest. The snowball method targets the smallest balance first, producing quick wins that keep motivation high. Studies of real borrowers suggest the snowball often works better in practice, because plans people stick to beat plans they abandon. Either way, run each debt through this calculator and revisit as balances close.
Balance-transfer cards and debt-consolidation loans can cut the interest rate substantially. Mind the transfer fees and the rate after any promotional period ends.
Frequently asked questions
Why does my minimum payment barely reduce the balance?
Because most of a minimum payment goes to interest. On a $5,000 balance at 22% APR, the first month's interest is about $92, so a $100 minimum payment reduces the balance by only $8. That is why minimum-only payoff can take decades.
What happens if I pay more than the monthly payment?
Extra payments go straight to the principal, which shrinks the balance faster and reduces every future month's interest. Re-run the calculator with the higher payment. Even $25 extra a month moves the payoff date.
Does this work for loans with fixed terms, like car loans?
Yes. Enter the balance, APR and your actual monthly payment, and the result matches the remaining schedule. It also shows how much time and interest an extra payment would save.
Is it better to save or pay off debt first?
Compare rates. Paying down a 22% credit card is a guaranteed 22% return, far above any savings account, so high-interest debt usually wins. Keep a small emergency buffer while doing it.
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This calculator is for general information and education only. It is not professional advice. Confirm important decisions with a qualified adviser.