Debt Payoff Calculator

How this debt payoff calculator works

This debt payoff calculator, also a debt repayment calculator and debt payoff planner, works out how long it will take to clear all of your debts and what order to pay them in. List each balance, its monthly or minimum payment, and its interest rate, then add any extra money you can put toward them. List only cards and it works as a credit card debt payoff calculator too.

The calculator repeats these steps month by month until every balance reaches zero:

1. Add one month of interest to each debt: balance × rate ÷ 12.
2. Pay the monthly or minimum payment on every debt.
3. Send all extra money to the debt with the highest interest rate.
4. When a debt is paid off, move its payment to the next-highest rate if you chose to keep your total monthly payment the same.

For example, a $14,000 car loan at 6.9%, a $22,000 student loan at 5.5%, a $6,500 credit card at 23.99%, and a $1,800 store card at 28.99% have $825 in monthly payments. With an extra $150 a month and payments rolling over, they are gone in 55 months with about $8,634 in interest. With no extra payments and no rollover, the same debts take 120 months and cost about $16,923 in interest.

How to pay off debt faster

• Keep paying the same total. When one debt is gone, move its payment to the next one instead of spending it.
• Add a small monthly extra. Extra money goes straight to principal, so it also lowers future interest.
• Use windfalls. A tax refund or bonus can go in as a yearly or one-time extra payment.

Debt avalanche calculator vs. debt snowball

This is a debt avalanche calculator: it targets the highest interest rate first, which costs the least overall. It isn't a debt snowball calculator, which would target the smallest balance first for quicker early wins. The snowball method can cost more interest, but some people find it easier to stick with. If you prefer it, the steps are the same with a different order, and any plan you finish beats a cheaper one you abandon.

What this debt calculator leaves out

This is an estimate. It uses a simple monthly rate, while many credit cards charge interest daily, so real interest can differ depending on when you pay and how your billing cycle works. It assumes fixed rates and payments, no new charges, and no fees. Credit card minimums usually shrink as balances fall, so enter the amount you plan to keep paying. Before paying a loan off early, check whether it has a prepayment penalty.

Frequently asked questions

How long will it take to pay off my debt?

Enter your balances, payments, and rates above. The result shows the total months for all debts, the month each one is paid off, and the exact payment to make on each debt along the way.

What is the debt avalanche method?

You make the required payment on every debt, then put all extra money toward the debt with the highest interest rate. Once it is gone, you move on to the next-highest rate. Because expensive interest is removed first, this order saves the most money.

Why does the calculator say a debt would never be paid off?

If a payment is no larger than that debt's monthly interest, the balance never falls. Raise the payment above the interest shown in the message. Plans that would take more than 1,000 months are also rejected.

When are yearly extra payments made?

In month 1 and every 12 months after that (months 13, 25, and so on). The one-time extra is made in the month you choose, and it's simply unused if your debts are already gone by then.