Debt Payoff Calculator

How Debt Payoff is Calculated

Each month, interest accrues on the remaining balance. Your payment first covers the interest, then reduces the principal. The calculator simulates this month by month until the balance reaches zero.

Example

With a $5,000 balance at 18.5% APR and $200/month payments, you'll be debt-free in about 32 months, having paid approximately $1,370 in interest.

Strategies to Pay Off Debt Faster

• The Avalanche method: Pay minimums on all debts, put extra money toward the highest-interest debt first. Saves the most money.
• The Snowball method: Pay off smallest balances first for psychological wins and momentum.
• Even $50 extra per month can cut months off your payoff timeline.
• Consider a balance transfer to a lower-interest card to reduce total interest paid.