tools / finance

Debt Payoff Calculator

See how long it takes to pay off a debt and how much interest you'll pay.

Current Balance

Annual Interest Rate (APR)

Monthly Payment

Minimum to cover interest: $155.76/mo

Debt-free by

November 2029

41 monthly payments

$3,800.00

Total Interest

$12,300.00

Total Paid

Paying $350.00/mo instead saves 8 months and $750.00 in interest.

What is the debt avalanche method?: Pay minimums on all debts, then put any extra money toward the highest-interest debt first. Mathematically optimal — minimizes total interest paid.
What is the debt snowball method?: Pay minimums on all debts, then put extra money toward the smallest balance first regardless of interest rate. Builds momentum through quick wins — some people find it more motivating than the avalanche method.
How much does an extra $50/month matter?: On a $5,000 balance at 20% APR with $150/month payments, adding $50/month cuts payoff time from 49 months to 29 months and saves over $700 in interest.
Should I pay off debt or invest?: If your debt interest rate exceeds expected investment returns (typically 7–10% for index funds), pay off debt first. High-interest credit card debt at 20%+ should almost always be prioritized over investing.

Guide: How to Pay Off Debt

The debt avalanche and debt snowball methods explained, how to choose between them, and a worked example showing total interest for each strategy.

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