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Debt Payoff Calculator

The Debt Payoff Calculator shows you exactly how long it will take to pay off your debt and the total interest cost — whether you use the avalanche (highest rate first) or snowball (lowest balance first) strategy.

Your Debts

Debt 1

Debt-Free In

2 yr 8 mo

Total Interest

$1,314

Total Paid

$6,314

View amortization schedule (first 32 months)
MonthInterestRemaining Balance
1$75.00$4875.00
2$73.13$4748.13
3$71.22$4619.35
4$69.29$4488.64
5$67.33$4355.97
6$65.34$4221.31
7$63.32$4084.63
8$61.27$3945.90
9$59.19$3805.08
10$57.08$3662.16
11$54.93$3517.09
12$52.76$3369.85
13$50.55$3220.40
14$48.31$3068.70
15$46.03$2914.73
16$43.72$2758.45
17$41.38$2599.83
18$39.00$2438.83
19$36.58$2275.41
20$34.13$2109.54
21$31.64$1941.18
22$29.12$1770.30
23$26.55$1596.86
24$23.95$1420.81
25$21.31$1242.12
26$18.63$1060.75
27$15.91$876.67
28$13.15$689.82
29$10.35$500.16
30$7.50$307.66
31$4.61$112.28
32$1.68$0.00

Quick answer

To find your debt payoff date, enter your balance, annual interest rate (APR), and monthly payment. The time to payoff is calculated using the formula: months = −ln(1 − r × B / P) ÷ ln(1 + r), where r is the monthly rate (APR ÷ 12), B is the balance, and P is the monthly payment. For example, a $5,000 debt at 18% APR with $200/month payments takes 32 months and costs export const batch4Tools: ToolContent[] = ,314 in interest. Paying more each month dramatically shortens payoff time and reduces total interest paid.

Formula & method

months = −ln(1 − (r × B) / P) ÷ ln(1 + r)
  • months — Number of months until debt is fully paid
  • B — Current outstanding balance ($)
  • r — Monthly interest rate = APR ÷ 12 ÷ 100
  • P — Fixed monthly payment amount ($)
  • ln — Natural logarithm

Number of months to pay off a single debt given a fixed monthly payment. Requires P > r × B (payment exceeds monthly interest).

P = B × r × (1 + r)^n ÷ ((1 + r)^n − 1)
  • P — Required monthly payment ($)
  • B — Current outstanding balance ($)
  • r — Monthly interest rate = APR ÷ 12 ÷ 100
  • n — Desired number of months to pay off

Required monthly payment to pay off a balance in exactly n months (standard amortization formula).

Examples

Example 1: Credit Card: $5,000 at 18% APR, $200/month
Input
balance: 5000 | apr: 18 | monthlyPayment: 200
Result
32 months to pay off, export const batch4Tools: ToolContent[] = ,314 total interest
Why
Monthly rate = 18% ÷ 12 = 1.5%. Each month $75 in interest accrues on the starting balance. Applying $200/month, the debt is eliminated after 32 months. Total paid = $6,314 (principal $5,000 + interest export const batch4Tools: ToolContent[] = ,314).
Example 2: Two Debts (Avalanche): $3,000 at 22% + $7,000 at 12%, $400/month
Input
debtA: $3,000 at 22% APR | debtB: $7,000 at 12% APR | totalPayment: 400 | strategy: Avalanche
Result
30 months to pay off both debts, export const batch4Tools: ToolContent[] = ,798 total interest
Why
Avalanche method attacks the 22% debt first while paying the minimum on the 12% debt. Debt A ($3,000 at 22%) clears first, then all $400 goes to Debt B. Total interest across both debts = export const batch4Tools: ToolContent[] = ,798 over 30 months.
Example 3: Personal Loan: $2,500 at 15% APR, export const batch4Tools: ToolContent[] = 00/month
Input
balance: 2500 | apr: 15 | monthlyPayment: 100
Result
31 months to pay off, $516 total interest
Why
Monthly rate = 15% ÷ 12 = 1.25%. Monthly interest on $2,500 starts at $31.25. With export const batch4Tools: ToolContent[] = 00 payments, approximately $68.75 reduces principal each month initially. The loan is retired in 31 months with $516 in total interest charges.
Example 4: Required Payment: Pay export const batch4Tools: ToolContent[] = 0,000 at 20% APR in 36 months
Input
balance: 10000 | apr: 20 | targetMonths: 36
Result
Required monthly payment: $371.64, total interest: $3,379
Why
Using the amortization formula P = B × r × (1+r)^n ÷ ((1+r)^n − 1) with r = 20%/12 = 1.667% and n = 36: P = 10,000 × 0.01667 × (1.01667)^36 ÷ ((1.01667)^36 − 1) = $371.64/month. Total paid = export const batch4Tools: ToolContent[] = 3,379, so interest = $3,379.

Frequently asked questions

What is the avalanche method and why does it save money?

The avalanche method means you pay minimums on all debts and put any extra money toward the debt with the highest interest rate first. Because high-rate debts accumulate interest fastest, eliminating them first reduces the total interest you pay over time. It is mathematically optimal and always saves more interest than any other ordering.

What is the snowball method and when should I use it?

The snowball method targets the debt with the lowest balance first, regardless of interest rate. Once the smallest debt is gone, you roll that payment into the next smallest. It typically costs more in total interest than the avalanche method, but the quick wins of paying off small debts completely can provide powerful psychological motivation that keeps people on track.

How much extra should I pay each month to make a big difference?

Even small extra payments matter significantly. On a $5,000 balance at 18% APR, increasing monthly payments from export const batch4Tools: ToolContent[] = 50 to $200 cuts payoff time from 46 months to 32 months — saving 14 months and roughly $600 in interest. A common target is paying at least double the minimum required payment to see substantial time and interest savings.

What if my monthly payment is less than the monthly interest?

If your payment does not exceed the interest that accrues each month, your balance will never decrease — it will grow. This is called negative amortization. Always ensure your payment exceeds the monthly interest charge: monthly interest = Balance × (APR ÷ 12 ÷ 100). For a $5,000 balance at 18% APR the minimum meaningful payment is $75.01.

Does paying debt off early improve my credit score?

Paying down revolving debt (credit cards) typically boosts your credit score by lowering your credit utilization ratio — the percentage of available credit you are using. Paying off installment loans (personal loans, auto) early can cause a minor temporary dip because it reduces credit mix, but the long-term effect of lower debt is generally positive for your score.

Should I invest or pay off debt first?

A common rule of thumb: if your debt's APR is higher than your expected investment return (often cited as ~7% for a broad stock index), prioritize paying off debt. High-interest debt above 8–10% APR is almost always better to eliminate before investing in taxable accounts. Exception: always contribute enough to a 401(k) to capture any employer match — that is an immediate 50–100% return.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

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Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

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