Debt Payoff Calculator
Debt payoff calculator
See how long a fixed monthly payment takes to clear a debt, and how much interest you pay on the way. Enter a balance, its APR, and what you can pay each month. If the payment is too small to cover the interest, the calculator will tell you so you can raise it.
Plan your payoff
Debt payoff calculator
These figures are estimates for illustration only. The calculator assumes a fixed interest rate and the same payment every month, with interest compounding monthly. Real cards have variable rates, minimum-payment rules, and fees, so your actual payoff will differ. This tool is educational and is not personalized financial advice.
How this calculator works
Methodology
- Formula
- Each month interest is added at APR ÷ 12, then your payment is subtracted. The calculator repeats this until the balance reaches zero, counting the months and adding up the interest.
- Assumptions
- The interest rate and monthly payment stay the same for the whole payoff, and interest compounds once a month. No new spending is added to the balance.
- Data sources
- The method is standard amortization. For guidance on dealing with credit-card and other debt, see the Consumer Financial Protection Bureau linked below.
- Limitations
- It does not model variable APRs, promotional rates, fees, or minimum-payment rules, and it handles one balance at a time. Treat the result as an estimate.
Calculations are our own and are estimates. Actual payoff depends on your card's terms, rate changes, fees, and any new charges. This is general education, not personalized financial advice.
A worked example
$5,000 at 24% APR, paying $200 a month
At 24% APR the balance grows by about 2% each month before your payment lands. Paying a steady $200 clears the debt in 36 months and costs $1,801.13 in interest — a total of $6,801.13 repaid. Raising the payment to $300 would clear it far sooner and cut the interest sharply; try it above.
Frequently asked questions
Which debt should I pay off first?
Two common methods work. The avalanche pays the highest interest rate first and saves the most money; the snowball pays the smallest balance first and builds momentum. This calculator handles one balance at a time, so you can compare payments on each debt.
How does my APR affect payoff time?
The higher the APR, the more of each payment goes to interest instead of the balance. At very high rates a low payment can barely dent what you owe, which is why the calculator warns when a payment is too small to make progress.
Does paying more than the minimum really help?
Yes, usually by a lot. Because interest is charged on the balance you still owe, every extra dollar shortens the payoff time and cuts total interest. Raise the payment in the calculator to see the effect.
Sources
- Consumer Financial Protection Bureau (CFPB)Consumer guidance on paying down credit-card and other debt