How the payoff date is calculated
Each month, interest is added at your APR ÷ 12, then your payment is subtracted. The calculator repeats this until the balance reaches zero. Because interest is charged on the remaining balance, every extra dollar paid early reduces all the interest that would have followed it.
What a bigger payment does
$8,000 of debt at 19.99% APR:
Going from $200 to $300 a month saves 31 months and more than $2,600.
Avalanche vs. snowball
If you have several debts, enter the total balance and a weighted average rate here, then choose an order:
- Debt avalanche — extra money to the highest interest rate first. Mathematically the cheapest.
- Debt snowball — extra money to the smallest balance first. Slightly more interest, but paying off whole accounts quickly helps many people stick with the plan.
Either way, keep paying at least the minimum on every account so you avoid late fees and credit damage.
Related Debt Freedom & Acceleration Tools
Executing an accelerated debt payoff plan saves thousands in cumulative interest charges. Optimize high-interest revolving balances using our Credit Card Payoff Calculator, compare personal loan consolidation options with the Loan Calculator, establish a balanced 50/30/20 spending framework via the Budget Calculator, and safeguard your journey with the Emergency Fund Calculator.
Frequently asked questions
Should I pay off debt or save first?
Most planners suggest a small starter emergency fund (around $1,000–$2,000) first, so a surprise expense doesn't go back on a card, then aggressive payoff of high-interest debt, then a full 3–6 month emergency fund.
Is debt consolidation worth it?
It can be if the new loan's APR, including fees, is clearly lower than your current average rate and you don't run the old balances back up. Use this calculator twice — once with your current rate and once with the consolidation rate — to compare.
How do I find my average interest rate?
Multiply each balance by its APR, add the results, and divide by the total balance. For example, $5,000 at 24% and $3,000 at 12% average 19.5%.