Debt Payoff Calculator
Paying off a credit card or loan? See how long it takes with your current payment — and how much faster it goes if you pay a bit more.
Paying off debt faster
Debt is compound interest running in reverse: the balance earns interest for the bank, every month, on whatever you haven't paid off yet. At credit-card rates above 20%, that machine works fast — which is exactly why small increases in your payment have outsized effects. Every extra dollar goes straight to principal and stops generating interest forever.
The minimum payment trap
Card issuers typically set minimums around 2% of the balance — designed to keep you paying as long as possible. On that same $8,000 at 22%, paying $170/month takes over 9 years and costs $10,583 in interest — more than the original debt. The minimum isn't a suggestion for you; it's a revenue plan for them. Always pay more than the minimum, even if it's just $20.
Two payoff strategies that work
With multiple debts, pick a method and automate it. Avalanche: pay minimums on everything, throw every spare dollar at the highest APR first — mathematically optimal. Snowball: attack the smallest balance first for the psychological win of closing accounts — slightly more expensive, dramatically better completion rates. The best method is the one you'll stick with.
Common questions
Should I use savings to pay off my card?
Usually yes, above a small emergency buffer. Savings earning 4% while a card charges 22% is an 18% guaranteed loss on every dollar sitting idle. Keep roughly one month of expenses as a cushion, deploy the rest against the debt, then rebuild savings with the freed-up payment.
Is a balance transfer or consolidation loan worth it?
A 0% balance-transfer card or a personal loan at 10–12% can cut the interest drain dramatically — if you keep the payment the same and don't run up the old card again. Watch for transfer fees (typically 3–5%) and where the rate jumps after the promo period. The tool is only as good as the discipline behind it.
Why does my balance barely move even though I pay every month?
Check what share of your payment is interest. At 22% APR, an $8,000 balance generates about $147 of interest monthly — pay $170 and only $23 touches the principal. If the calculator above shows "Never", your payment doesn't even cover the interest. Raising the payment is the only exit; the slider shows exactly how much each increase buys you.