Calculate how long it will take to pay off your debt and how much interest you'll pay. Plan your debt-free journey with our comprehensive calculator.
Paying off debt requires understanding how interest accumulates and how your monthly payments are applied. Each payment covers both interest charges and principal reduction. The higher your interest rate, the more of each payment goes toward interest rather than reducing your balance. By increasing your monthly payment even slightly, you can dramatically reduce both the time to payoff and total interest paid.
The calculator uses the standard amortization formula to determine your payoff timeline. Each month, interest is calculated on your remaining balance, then subtracted from your payment. The remainder goes toward reducing your principal. As your balance decreases, more of each payment goes toward principal, accelerating your payoff.
Pay minimum on all debts, then put extra money toward the highest interest rate debt first.
Pay minimum on all debts, then put extra money toward the smallest balance first.
Even an extra $50-100 per month can cut years off your payoff timeline and save thousands in interest. Round up your payment to the nearest hundred or add a percentage increase to see dramatic results.
Instead of one monthly payment, pay half every two weeks. You'll make 26 half-payments (13 full payments) per year instead of 12, reducing interest and payoff time without feeling the pinch.
Tax refunds, bonuses, gifts, or side income should go directly toward your debt principal. These lump-sum payments have an outsized impact on reducing interest charges over the life of the debt.
For credit card debt, a 0% APR balance transfer can pause interest accumulation for 12-21 months, allowing all payments to go toward principal. Factor in transfer fees (typically 3-5%) when calculating savings.
Call your creditors and request a lower rate, especially if you have a good payment history. Even a 2-3% reduction can save hundreds or thousands in interest over time.
Interest rates dramatically affect both payoff time and total cost. A $10,000 debt at 15% APR with $300 monthly payments takes 42 months and costs $2,500 in interest. The same debt at 25% APR takes 52 months and costs $5,600 in interest—more than double. This is why reducing your interest rate through balance transfers, consolidation, or negotiation should be a priority.
| Interest Rate | Payoff Time | Total Interest | Total Paid |
|---|---|---|---|
| 10% APR | 37 months | $1,050 | $11,050 |
| 15% APR | 42 months | $2,500 | $12,500 |
| 20% APR | 47 months | $4,100 | $14,100 |
| 25% APR | 52 months | $5,600 | $15,600 |
*Based on $10,000 debt with $300 monthly payment
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