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💳 Debt Payoff Calculator

Calculate how long it will take to pay off your debt

37
Months to Pay Off
Debt-free by December 2027
Total Paid
$11,100
Total Interest
$1,100
Interest Saved
$0

How to Use This Calculator

  1. Enter your total debt balance across all debts you want to pay off
  2. Input the average interest rate (for multiple debts, use weighted average)
  3. Enter your planned monthly payment amount
  4. See how many months until you're debt-free and total interest you'll pay
  5. Try increasing your payment to see how much faster you can become debt-free

Understanding Debt Payoff

The Power of Extra Payments

Even small extra payments dramatically reduce payoff time and interest. For a $10,000 debt at 18% APR: paying $250/month takes 61 months and costs $5,250 in interest. Paying just $50 more ($300/month) cuts it to 41 months and $2,300 interest – saving nearly $3,000! Every extra dollar goes directly to principal, not interest.

Debt Avalanche vs Snowball Methods

Debt Avalanche: Pay minimums on all debts, put extra toward the highest interest rate first. Mathematically optimal, saves most money. Debt Snowball: Pay minimums on all debts, put extra toward smallest balance first. Provides quick wins and psychological motivation. Both work – choose based on what keeps you motivated!

Minimum Payments Are a Trap

Credit card minimum payments (often 2-3% of balance) are designed to maximize lender profit, not help you. A $5,000 balance at 18% APR with 2% minimum payments takes 30 years and $7,700 in interest! Paying even $100/month cuts it to 6 years and $1,600 interest. Never pay just the minimum if you can afford more.

Strategies to Accelerate Payoff

1) Bi-weekly payments: Pay half your monthly amount every 2 weeks (equals 13 months/year). 2) Windfalls: Put tax refunds, bonuses toward debt. 3) Balance transfer: Move high-interest debt to 0% APR card (watch for fees). 4) Debt consolidation: Combine multiple debts at lower rate. 5) Side income: Direct extra earnings to debt. 6) Budget cuts: Redirect savings to payments.

Frequently Asked Questions

How much should I pay toward debt each month?

Financial advisors recommend allocating 15-20% of your take-home income toward debt repayment. Pay as much as you can while maintaining an emergency fund. Even $50-100 extra per month makes a significant difference over time.

Should I pay off debt or save for retirement?

Do both if possible! At minimum, contribute enough to get employer 401(k) match (free money), then focus on high-interest debt (over 7-8%). Once high-interest debt is gone, increase retirement savings while paying off lower-interest debt like mortgages.

What debts should I pay off first?

Prioritize high-interest debt (credit cards, payday loans) over low-interest debt (mortgages, student loans). Use the avalanche method for maximum savings or snowball method for psychological wins. Either way, always pay at least minimums on everything to avoid fees and credit damage.

How does this calculator work?

The calculator uses the standard amortization formula to determine how many months it takes to pay off your debt given your monthly payment and interest rate. It accounts for compound interest charged monthly on your remaining balance.

Is this tool free to use?

Yes! This debt payoff calculator is completely free with no hidden costs, subscriptions, or limitations. Use it to plan your path to financial freedom.

Is my data private?

Absolutely. All calculations are performed locally in your browser. Your financial information never leaves your device and is not stored on any server.