Debt Payoff Calculator
Balance, rate, and payment in — months to freedom and total interest out. Then watch what an extra $50 does.
How fast does your payment clear the debt?
The math your credit card company hopes you skip
A fixed payment against a compounding balance follows a known curve. Each month, interest is added (balance × monthly rate), your payment lands, and whatever's left of the payment after interest chips at the principal. The number of months to zero is:
The dangerous case: if your payment barely exceeds the monthly interest, the formula explodes — payoff takes decades. If it's below the interest, the balance grows forever. The calculator warns you when that's happening.
A worked example
$8,500 at 24.99% APR with a $300 payment: 40 months and roughly $3,330 in interest — you pay nearly 40% of the balance again in interest. Add just $50/month and you're done about 6 months sooner, saving around $550. Minimum payments on cards are designed to be barely above the interest line; that's not an accident, it's the business model.
Snowball vs. avalanche
With multiple debts, two strategies dominate. Avalanche: pay minimums on everything, throw every spare dollar at the highest rate — mathematically optimal. Snowball: attack the smallest balance first for quick wins — psychologically stickier. The honest answer: the best method is whichever one you'll actually sustain. Both beat paying minimums by years and thousands of dollars.
Frequently asked questions
Why does the calculator say 'never'?
Your payment is less than or equal to the monthly interest charge, so the balance never shrinks. Any payment even slightly above the interest line starts real progress — and every dollar above it accelerates fast.
Should I pay off debt or invest?
Compare rates: a 25% card debt is a guaranteed 25% return when paid off — nothing legal beats that. Low-rate debt (a 3% mortgage) is a different conversation. High-interest debt first is almost always right.
Do balance transfer cards make sense?
A 0% intro transfer can save serious interest if — and only if — you can clear the balance within the promo window and you stop adding new charges. The transfer fee (3–5%) is the price of the runway.
Does paying off debt help my credit score?
Generally yes — credit utilization (balance versus limit) is a major scoring factor, and dropping utilization usually lifts scores within a couple of statement cycles.