Debt Payoff Calculator
Payoff timeline & interest savings
How to Use the Debt Payoff Calculator
See how long it will take to pay off debt and how much interest you'll pay. Compare payoff timelines with and without extra payments to find motivation for accelerated debt repayment.
The Math of Debt
With each payment, a portion goes to interest (calculated on remaining balance) and the rest reduces principal. Higher interest rates mean more of each payment goes to interest rather than reducing your debt.
Extra Payment Impact
Even small extra payments can:
- Save thousands in interest over the life of the debt
- Cut years off your payoff timeline
- Build momentum and motivation for financial goals
Debt Payoff Strategies
- Avalanche: Pay highest interest rate first (mathematically optimal)
- Snowball: Pay smallest balance first (psychologically motivating)
- Consolidation: Combine debts at a lower rate
Frequently Asked Questions
Use our calculator by entering your balance, interest rate, and monthly payment. For example, a $10,000 debt at 18% APR with $250/month payments takes 56 months to pay off, costing $3,923 in interest.
Pay minimum payments on all debts, then put extra money toward the highest interest rate debt. Once paid off, apply that payment to the next highest rate. This method minimizes total interest paid and is mathematically optimal.
Pay minimum payments on all debts, then put extra money toward the smallest balance regardless of interest rate. Quick wins build motivation. While you may pay more total interest, the psychological benefits help many people succeed.
Build a small emergency fund first ($500-$1,000), then focus on high-interest debt. Without emergency savings, unexpected expenses go back on credit cards. Once debt-free, build a full 3-6 month emergency fund.
Pay off high-interest debt (above 6-8%) before investing beyond employer 401k match. Credit card debt at 20% is a guaranteed negative return - paying it off is like earning 20%. For low-rate debt, investing may make more sense.
Aim to pay more than minimums - at least double if possible. Minimum payments keep you in debt for decades. Use our calculator to see how extra payments dramatically reduce payoff time and interest costs.