Debt Payoff Calculator
Debt math hides its own cruelty inside the interest line: a $5,000 balance at 18% APR accrues $75 a month before you pay a cent, and minimum payments engineered just above that number stretch the payoff past a decade. Enter balance, APR and the payment you actually make, and this calculator simulates every month until the balance hits zero - then shows the months, the total interest, and the total that left your account.
The note does the motivational arithmetic automatically: the same simulation at a 10% higher payment shows how many months disappear and how much interest survives - usually a startling ratio, which is precisely the point. Payments below the monthly interest trigger a plain-language warning instead of a bogus answer, and the strategy one-liner (snowball vs avalanche) closes it out. It pairs with the loan payment calculator for the borrowing side.
How to use
- Enter the balance, the APR and your monthly payment.
- Read months to debt-free, total interest and total paid.
- Check the note for what a slightly bigger payment saves you.
Frequently asked questions
How long will it take to pay off my debt?
Depends on the gap between payment and interest: $5,000 at 18% APR with $200/month takes about 32 months and roughly $1,230 in interest; at $150/month it stretches to 43 months and over $1,900. The calculator simulates month by month rather than trusting a closed formula, so irregular inputs still get honest answers.
What is the minimum payment trap?
Minimums are typically 1-2% of the balance plus interest - at 2%, most of the payment is interest, and the payoff stretches toward decades. This calculator flags it directly: if your payment doesn't clear the monthly interest, it says so and states the minimum payment that actually makes progress.
Snowball or avalanche - which is better?
Avalanche (highest APR first) is mathematically optimal; snowball (smallest balance first) wins on psychology because closing an account builds momentum. The interest difference is usually modest - pick the one you'll sustain, and let the extra-payment note show what consistency buys.
Should I pay extra or invest the difference?
Compare guaranteed vs expected: extra payments return the APR risk-free (18% card payoff beats almost any investment), while low-APR debt (sub-5%) against long-horizon investing is a genuine coin toss. Run your numbers here, then decide with the loan payment calculator as the counterweight.