Debt Payoff Calculator
Find out how long your balance will take to pay off, what it costs in interest, and exactly how much time and money an extra monthly payment saves.
Last reviewed September 2026 · How this calculator works
High-interest debt is the one "investment" with a guaranteed return: every dollar of extra payment earns your card's interest rate, risk-free. This calculator shows the payoff timeline at your current payment and with a little extra, month by month.
Your numbers
| End of year | Balance (current payment) | Balance (with extra) |
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A worked example: $8,000 at 22%
With this calculator's default numbers, an $8,000 balance at 22% APR paid down at $250 a month takes 49 months (just over 4 years) and costs about $4,158 in interest. Adding just $100 a month cuts payoff to 30 months and total interest to about $2,463, saving roughly $1,695 and 19 months.
That extra $100 a month earns the equivalent of a guaranteed 22% return. No mainstream investment reliably matches that, which is why paying off high-interest debt usually comes before investing beyond any employer 401(k) match.
Avalanche vs. snowball: which debt first?
If you have several debts, pay the minimum on all of them and put every extra dollar toward one target:
- Avalanche: target the highest interest rate first. This minimizes total interest and is mathematically optimal.
- Snowball: target the smallest balance first. You pay somewhat more interest, but quick wins keep many people motivated, and a plan you stick to beats a perfect plan you abandon.
When a debt is paid off, roll its entire payment into the next target. That "rollover" is what makes both methods accelerate over time.
Why minimum payments take so long
Credit card minimums are often set around 1% to 3% of the balance plus interest. As the balance falls, the minimum falls too, so the payoff stretches out for years. Paying a fixed dollar amount, even just your current minimum, rather than the shrinking minimum, dramatically shortens the timeline. Your statement is required to show how long payoff takes at the minimum. It's worth reading.
Ways to pay debt off faster
- Ask for a lower rate. Card issuers sometimes lower APRs for customers with good payment history who ask.
- Consider a balance transfer or consolidation loan at a lower rate, but check transfer fees (often 3%–5%), when the promotional rate ends, and avoid running the old card back up.
- Automate the extra payment so it happens before you can spend it.
- Direct windfalls, such as tax refunds and bonuses, to the target debt.
Related guides
- What Counts in Net Worth? A Practical Guide to Calculating Yours
- How Investment Fees Compound Against You (With the Math)
- How Much Do I Need to Retire? The 4% Rule, Explained Honestly
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Frequently asked questions
How is the payoff time calculated?
Each month, interest is added at your APR divided by 12, then your payment is subtracted, until the balance reaches zero. This assumes a fixed payment, a fixed rate and no new charges.
Should I pay off debt or invest?
Generally, capture any employer 401(k) match first, then pay off high-interest debt such as credit cards before investing more. Paying off a 22% card is a guaranteed 22% return. Low-rate debt, like a 3% mortgage, is a different decision.
Does paying extra on a credit card really help?
Yes. Every extra dollar goes straight to principal, which reduces future interest. On an $8,000 balance at 22%, adding $100 a month to a $250 payment saves about $1,695 and 19 months.
What if my payment doesn't cover the interest?
Then the balance will never shrink. The calculator flags this. Increase the payment, or look into a lower-rate option such as a consolidation loan or hardship program.