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Debt Payoff Calculator

Your debt-free date, total interest and the fastest payoff plan.

Your numbers

Debt-free in
4 yrs 8 mos (56 payments)
Total interest
$7,210.43
Total paid
$22,210.43
Monthly payment
$400.00

Breakdown

Remaining debt by year

How this calculator works

Minimum payments are designed to keep you in debt, not get you out — on a high-APR balance they can stretch repayment over a decade while you pay multiples of what you borrowed in interest. This debt payoff calculator cuts through that: enter your balance, average APR and the monthly amount you can actually pay, and it simulates month-by-month payoff to give you a debt-free date, the total interest you will pay, and a year-by-year balance chart.

The single most important insight is the payment threshold: your payment must exceed the monthly interest charge or the balance never shrinks — the calculator warns you explicitly if you are below it. Above that line, every extra dollar has an outsized effect because it goes straight to principal and kills future interest. Try bumping your payment by $50 or $100 and watch years fall off the timeline. If you carry multiple debts, run each through separately, then attack them highest-APR-first (the avalanche method) for the mathematically fastest payoff — or smallest-balance-first (snowball) if quick wins keep you motivated.

Frequently asked questions

Why does my balance barely move with minimum payments?
Most of a minimum payment covers that month's interest, leaving little for principal. At 18–24% APR, minimums can take 10+ years to clear a balance.
What happens if my payment is less than the monthly interest?
The balance grows instead of shrinking — negative amortization. You must pay more than the monthly interest charge to make any progress.
Snowball or avalanche — which is better?
Avalanche (highest APR first) costs the least in interest. Snowball (smallest balance first) gives faster psychological wins. Both beat minimum payments by years.
Should I consolidate my debt first?
If you can get a lower-rate consolidation loan or 0% balance transfer and you will not run the cards back up, consolidation can cut total interest significantly.
Disclaimer: Results are estimates for planning purposes only and are not financial advice. Actual loan terms, taxes and investment returns vary — consult a qualified professional before making financial decisions.