Debt Payoff Calculator

See when you'll be debt-free, how much interest you'll pay, and what an extra payment saves.

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Your results will appear here as you type.

How this is calculated

Each month, interest = Balance × APR ÷ 12. Your payment covers that interest first; the rest reduces the balance. We repeat this month by month until the balance reaches zero. Real card interest is usually calculated daily, so your statement may differ slightly.

Assumptions

  • Fixed APR, interest calculated monthly, no new charges or fees. Card issuers usually calculate interest daily, so statements can differ slightly.

Sources

Estimates for planning and education only. Not financial, tax or legal advice, and not an official government calculation. Calculations run in your browser; nothing you enter is stored or sent.

How to use this calculator

Enter the current balance, the APR from your statement and your monthly payment. Add an extra amount to see how much time and interest it saves. The calculator assumes no new charges on the account.

Why extra payments matter so much

On high-interest debt, a large part of each minimum payment goes to interest. Every extra dollar goes straight to the balance, which lowers next month’s interest too, so the savings compound.

Example

A $5,000 credit card balance at 22% APR with a $200 monthly payment takes 34 months to pay off and costs about $1,750 in interest. Adding $50 a month cuts that to 26 months and saves about $460 in interest.

Paying off more than one debt

  • Avalanche method: pay minimums on everything and put extra money toward the highest interest rate first. This costs the least overall.
  • Snowball method: put extra money toward the smallest balance first. You pay a bit more interest but get quick wins that help many people stick with it.

Freeing up money for extra payments starts with your budget. Try the monthly budget calculator.

Frequently asked questions

Why is my result slightly different from my statement?

Most credit cards calculate interest daily on your average daily balance. This calculator uses a monthly calculation, which is very close but not identical.

What if my payment doesn't cover the interest?

Then the balance will never go down. The calculator will warn you and show the monthly interest so you know the minimum needed to make progress.

Sources

  1. Consumer Financial Protection Bureau — Credit cards (opens in a new tab)

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