Debt Payoff Calculator

Finance

Last updated: July 11, 2026

See how quickly you can pay off debt and how much interest you'll save with extra payments. Compare minimum-only vs. accelerated payoff strategies.

Current Balance ($)

Interest Rate (APR %)

Minimum Monthly Payment ($)

Extra Monthly Payment ($)

How to Use This Calculator

Enter your current Balance and the Interest Rate (APR).
Set your Minimum Monthly Payment amount.
Enter any Extra Monthly Payment you can afford above the minimum.
Click Calculate to compare payoff timelines and total interest with and without extra payments.

Formula

Monthly Interest = Balance × (APR / 12)
New Balance = Balance + Monthly Interest − Payment

If the payment exceeds the balance plus interest, only the remaining balance is charged. The process repeats until the balance reaches zero.

Examples

$5,000 Credit Card at 18% APR: Minimum $100/mo takes 94 months ($4,188 interest). Adding $50/mo extra pays it off in 44 months ($1,343 interest) — saving $2,845.

$15,000 Loan at 12% APR: $300/mo minimum takes 67 months ($4,521 interest). $500/mo pays off in 34 months ($2,097 interest) — saving $2,424.

Student Loan $30,000 at 6%: $300/mo takes 120 months ($9,697 interest). $500/mo takes 66 months ($5,309 interest) — saving $4,388 and 54 months.

Frequently Asked Questions

What is the best strategy to pay off debt?

The "avalanche" method targets the highest interest rate debt first. The "snowball" method targets the smallest balance first for psychological motivation. Both work — choose the one you'll stick with.

Why does extra payment help so much?

Extra payments reduce the principal faster, which means less interest accrues each subsequent month. The effect compounds — small extra payments can save thousands in interest.

Does this calculator handle variable rates?

No. It assumes a fixed APR throughout the payoff period. For variable-rate debts, re-run the calculation when the rate changes.

What about minimum payments that are a percentage?

Some credit cards set minimum payments as a percentage of the balance (typically 1–3%). This calculator uses a fixed dollar amount for simplicity.