Debt Payoff
Enter your balance, rate, and monthly payment — find out exactly when you'll be debt-free and the total interest cost.
Show amortization schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,844 | $1,756 | $8,244 |
| 2 | $1,459 | $2,141 | $6,103 |
| 3 | $989 | $2,611 | $3,492 |
| 4 | $417 | $3,183 | $309 |
| 5 | $5 | $309 | $0 |
How to use this calculator
- Enter your balance and APRBoth are on your statement or in your online account.
- Enter your monthly paymentAnything above the minimum dramatically shortens the payoff.
- Read the payoff date and total interestRaise the payment to watch how much interest you save.
Paying off debt is one of the few guaranteed returns in personal finance: every dollar of interest you avoid is a dollar you keep, risk-free. The trouble is that minimum payments are designed to keep you paying for years. This calculator shows the real timeline — and how much faster (and cheaper) it gets when you pay even a little extra.
How payoff actually works
Each payment is split between interest and principal. Early on, most of it goes to interest, so the balance barely moves. As principal shrinks, more of each payment attacks the balance and momentum builds. Paying above the minimum sends the entire extra amount straight at principal, which compounds the timeline in your favor.
Avalanche vs. snowball
There are two proven orders for tackling multiple debts. The avalanche pays the highest-interest balance first — mathematically optimal, it minimizes total interest. The snowball pays the smallest balance first — less efficient on paper, but the quick wins build motivation that keeps people going. The best method is the one you will actually finish.
A worked example
A $5,000 balance at 22% APR with a $150 monthly payment takes about 4.5 years to clear and costs roughly $2,900 in interest. Raise the payment to $250 and you are debt-free in about two years, paying around $1,150 in interest — over $1,700 saved by adding $100 a month. Adjust the numbers above to find the payment that fits your budget.