Debt Payoff Calculator — Payoff Date & Interest Saved
See exactly when you'll be debt-free, how much interest you'll pay in total, and how much you can save by adding even a small extra payment each month. Enter one debt at a time — credit card, personal loan, car payment, whatever it is.
💳 Calculate Your Debt Payoff
The Real Cost of Making Minimum Payments
When my colleague Aisha first ran the numbers on her $9,000 credit card balance at 22% APR, she was paying $225 a month — mostly because that was the minimum. She assumed she'd be done in about three years. The calculator told her it would take over 7 years and cost her more than $5,000 in interest on top of the original balance. That's like paying for the same thing twice.
That's how credit card minimum payments are designed. They're set low — usually 1–3% of the balance — specifically to maximise the interest you pay over time. The bank isn't doing you a favour by keeping your minimum payment "affordable." They're maximising their return.
Adding just $75 extra per month to Aisha's payment cut her payoff to under 4 years and saved her more than $2,500 in interest. The same principle applies at any balance size: even small extra payments have an outsized impact because they reduce the principal that interest compounds on.
Avalanche vs Snowball: Which Debt to Pay First
Note: this calculator models one debt at a time — enter each balance separately to see its individual payoff timeline and interest cost. The strategies below tell you which debt to focus your extra payments on when you have several.
If you have multiple debts (most people do), you need a strategy for which one to attack first while making minimums on everything else.
Avalanche Method (mathematically optimal)
After minimums, direct every extra dollar to the debt with the highest interest rate. Once it's gone, roll that freed payment to the next highest rate. This minimises total interest paid and gets you debt-free fastest. The downside: if your highest-rate debt also has a large balance, it can take many months before you see your first win.
Snowball Method (psychologically effective)
After minimums, attack the smallest balance first regardless of rate. Clear that quickly, then roll the payment to the next smallest. You pay more in total interest, but research — including studies by Harvard Business Review — shows the snowball method produces better real-world payoff rates because people are more likely to stick with it when they see early wins.
The right answer
The best method is the one you'll actually follow. If you're highly motivated and numbers-focused, avalanche. If you need a quick emotional win to stay committed, start with one small debt via snowball, then switch to avalanche once you have momentum.
How Extra Payments Save Interest
| Balance | Rate | Min. Payment | +$100/mo Extra | Interest Saved |
|---|---|---|---|---|
| $5,000 | 18% | $125 | 2.8 yrs vs 5.3 yrs | ~$1,400 |
| $10,000 | 20% | $250 | 3.8 yrs vs 7.8 yrs | ~$3,100 |
| $15,000 | 22% | $375 | 4.2 yrs vs 9.0 yrs | ~$5,200 |
| $25,000 | 15% | $600 | 3.4 yrs vs 5.5 yrs | ~$3,800 |
💡 Once your debt is cleared, put that monthly payment toward compound interest working for you
See how your savings grow →