📌 Overview

See how long it takes to pay off a debt and how much interest you will pay, based on balance, APR and monthly payment.

💳 Debt Payoff Calculator

See how long it takes to pay off a debt and how much interest you will pay, based on balance, APR and monthly payment.

Balance ($)

APR (%)

Monthly payment ($)

🔒 All processing happens in your browser. No data is uploaded to any server.

📋 How to Use

Enter the current balance you owe.
Enter the annual interest rate (APR).
Enter how much you can pay each month.
Click Calculate to see months to payoff and total interest.

❓ FAQ

Why does paying extra matter so much?

Extra payments reduce the principal faster, which means less interest accrues every month. On a long loan even small extra payments can cut months off the term.

Does this handle credit cards?

Yes — treat the balance as your card debt and the APR as the card rate. Just know card minimum payments are often calculated differently by the issuer.

What if my payment is too low?

If the monthly payment does not cover the monthly interest, the balance grows and the debt is never paid off. The calculator will warn you.

❓ More Questions

Does paying a little extra really help?

Greatly. Extra payments reduce the principal directly, so next month’s interest is calculated on a smaller balance — saving meaningful interest and shortening the term over time.

What if my payment is lower than the monthly interest?

The balance will not shrink — it will grow, and the debt is never paid off. This tool warns you in that case.

💡 Use Cases

💳

Credit cards

Plan how to clear balances fast.

🎓

Student loans

Compare standard vs accelerated.

🚗

Car loans

See interest saved by overpaying.

🔗 Related Tools

📖 Deep Dive: Debt Payoff Calculator

How debt accrues interest

A loan charges interest each month on the remaining principal. Your payment first covers interest; only the remainder reduces principal, so early payments are mostly interest.

The calculation

Monthly rate r = APR/12. Monthly interest = remaining principal × r; principal reduction = payment − monthly interest. Repeat monthly until the balance hits zero — the month count is your payoff time.

The power of prepayment

Every extra payment lowers the principal faster, so subsequent interest shrinks too. This is especially noticeable on high-rate consumer loans and credit cards.

Notes

Assumes fixed monthly payments and a fixed rate

Some loans charge prepayment penalties, reducing real savings

For reference only, not financial advice