Debt Payoff Calculator

How this debt payoff calculator works

This simulator answers a practical question: if I owe a balance at a given APR and I pay a fixed amount every month, how long until the debt is gone, and how much will I pay in total? It is useful for credit cards, store cards, and other revolving balances where you choose the payment rather than locking a fixed installment schedule.

Month-by-month logic

Each month, interest is applied to the remaining balance using the annual rate divided by 12. Your payment first covers that interest; anything left reduces principal. The process repeats until the balance reaches zero (or until a safety limit of months is hit if the payment is too small to cover interest).

Worked example

Imagine $4,000 owed at 22% APR with a $200 monthly payment. Early months send a large share of the payment to interest. As principal falls, more of each payment reduces the balance, so payoff accelerates. If you raise the payment to $300, months to payoff and total interest both drop sharply — that tradeoff is exactly what this tool is meant to show.

How to use it

1. Enter your current balance (what you owe today).
2. Enter the APR as an annual percent.
3. Enter the fixed monthly payment you can sustain.
4. If the tool warns that the payment does not cover interest, increase the payment or lower the rate assumption.

Tips for payoff planning

• Paying more than the minimum usually cuts years and interest cost.
• A 0% promotional APR still needs a plan for when the promo ends.
• New charges increase the balance; this model assumes you stop adding to the debt.

Frequently asked questions

Why does it say my payment never pays off the debt?

If the monthly payment is less than or equal to the interest accruing that month, the balance does not fall. Raise the payment or lower the rate assumption.

Is this snowball or avalanche?

This page models a single balance. For multiple debts, rank them yourself (smallest balance or highest rate) and apply extra payments on paper or in a spreadsheet.

Limitations

Late fees, penalty APRs, and changing rates are not included. Results are estimates only and are not financial advice.

Results are estimates only and are not financial advice.