You will be debt-free in
0 months
Your monthly payment must be larger than the interest charged each month, otherwise the balance never shrinks. Enter a balance above zero and a higher payment.
Total interest
Total you will pay
0.00Your extra payment saves you
Without the extra payment, this debt would never be paid off.
Estimates only. This calculator assumes a fixed interest rate, no new charges on the debt and interest added once a month.
How this debt payoff calculator works
Enter how much you owe, the yearly interest rate and how much you pay each month. Add an optional extra payment to see how much time and interest it saves. The calculator shows when you will be debt-free and what the debt costs you in total.
How the calculation works
Each month, interest is added to the balance at one twelfth of the yearly rate, and then your payment is subtracted. The calculator repeats this month after month until the balance reaches zero. The last payment is usually smaller than the others, because it only covers what is left.
Example
You owe 15,000 at 12% APR and pay 400 a month. You will be debt-free in 48 months (4 years), paying about 3,894 in interest, or about 18,894 in total. Add 100 extra each month and you finish in 36 months, pay about 2,923 in interest, and save 12 months and about 971.
Why your payment must beat the interest
At 12%, a 15,000 balance is charged about 150 in interest every month. If you pay 150 or less, the balance never goes down. The more you pay above the monthly interest, the faster the debt shrinks.
Ways to pay off debt faster
- Pay a little extra every month. Small amounts make a big difference over time. Test different extra payments above.
- Target the highest rate first. If you have several debts, pay extra on the one with the highest interest while paying the minimum on the others.
- Use windfalls. Tax refunds and bonuses can cut months off your payoff date.
- Ask about a lower rate. A lower APR means more of each payment reduces the balance.
Frequently asked questions
Should I pay off debt or save first?
Many people build a small emergency fund first, so an unexpected bill does not go back on a credit card, and then pay extra on high-interest debt. The right balance depends on your situation.
Does this work for several debts?
This calculator handles one debt at a time. For several debts, run each one separately and add the results.
What if the interest rate changes?
Variable rates can raise or lower your costs. Enter a higher rate to see a cautious estimate.