Finance

Debt Payoff Calculator

See how quickly you can become debt-free and how much extra payments save you.

Method:
Each month: Interest = Balance × (Rate/12)
Principal = Payment − Interest
New Balance = Balance − Principal

Debt Payoff Strategies

Debt Avalanche vs Debt Snowball

Avalanche: Pay minimums on everything, then put extra toward the highest-interest debt. Mathematically optimal — saves the most money.

Snowball: Pay off smallest balances first for psychological wins. May cost more in interest but keeps you motivated.

The True Cost of Minimum Payments

On $15,000 at 18.9% APR, paying only $300/month takes over 7 years and costs $10,000+ in interest. Adding just $200/month cuts it to under 3 years and saves over $5,000.