Debt Payoff Calculator
See how long it takes to pay off a balance and how much interest it will cost.
How to use
- Enter your balance and interest rate.
- Enter what you can pay each month.
- See the payoff time and total interest.
How the Debt Payoff Calculator works
Shows how long a credit card or loan balance takes to clear at a given monthly payment, and how much interest you pay getting there.
Each month it charges interest on the outstanding balance, subtracts your payment, and repeats until the balance reaches zero — accumulating the interest as it goes. If the payment does not exceed the monthly interest, it tells you so instead of running forever.
each month: interest = balance × r, balance = balance + interest − payment
Worked example
A $8,000 balance at 22% with $300 a month clears in about 35 months with roughly $2,300 of interest. Raising the payment to $400 clears it in 24 months and saves around $800.
Things worth knowing
- If your payment is at or below the monthly interest, the balance never falls. This is how minimum payments trap people.
- Avalanche method: pay the highest rate first — mathematically cheapest. Snowball method: pay the smallest balance first — psychologically easier. The best plan is the one you actually finish.
- A 0% balance transfer can help, but only if you clear it before the promotional rate ends.
Frequently asked questions
What is the debt snowball?
Paying minimums on all debts and throwing extra at the smallest balance first for quick wins and momentum.
Why won't a low payment work?
If the payment is less than the monthly interest, the balance grows instead of shrinking.
Why does the credit card minimum barely move my balance?
Minimums are typically set near 1–3% of the balance, which is often only slightly above the interest charged. Almost the entire payment is absorbed by interest.
Should I save or pay off debt first?
Generally pay down anything costing more than you could reliably earn — credit card rates far exceed realistic investment returns. Keep a small emergency buffer so a surprise does not put you straight back on the card.