Debt Payoff Calculator
See how long a debt takes to clear and how much extra payments save you.
Please note: A planning estimate, not debt advice. It assumes the rates and payments you entered hold for the whole term; if you are struggling with repayments, free debt-advice services can negotiate terms a calculator cannot.
What the Debt Payoff Calculator does
Every extra dollar above the minimum goes straight to principal, removing all future interest that dollar would have generated. That is why small increases in payment produce disproportionately large savings on high-interest debt.
Formula
Each month: interest = balance × rate ÷ 12New balance = balance + interest − paymentRepeat until the balance reaches zero
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Current balance | selected currency | Yes | Accepts more than 0. |
| Annual interest rate | % | Yes | — |
| Monthly payment | selected currency | Yes | Accepts more than 0. |
| Extra monthly payment | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Current balance, Annual interest rate and Monthly payment.
- Optionally add Extra monthly payment.
- Select Calculate.
Worked example
$12,000 at 19.9% with a $350 monthly payment, adding $100 extra.
- Balance
- 12000
- Rate
- 19.9
- Payment
- 350
- Extra
- 100
Clears in 3 years instead of 4 years 4 months, saving about ₹1,916 in interest.
Reading the result
- Because interest is charged on whatever balance remains, an extra payment made early in the payoff schedule saves more interest than the same extra payment made later — timing the extra payment sooner is worth more than the payment amount alone suggests.
Common mistakes
- Assuming a longer time at the minimum payment costs proportionally more interest. It does not — interest compounds on a shrinking balance each month, so the relationship between time and total interest is not a straight line.
Frequently asked questions
Snowball or avalanche?
Avalanche (highest rate first) saves the most money. Snowball (smallest balance first) delivers quicker wins and better motivation. The best method is the one you actually stick to.
Why do minimum payments take so long?
They are usually set at 1–3% of the balance, barely above the interest charge. On a high-rate card, minimums can stretch repayment past a decade.