Debt Payoff Calculator
How long to pay off a balance — and the interest cost
Tackling a credit card or loan balance? Enter the balance, rate and your monthly payment to see how long until it's gone — and the total interest cost.
The payment is the whole story
How long to pay off debt depends far more on what you pay each month than on what you owe.
At high interest rates, the size of the payment matters far more than the size of the debt. A payment barely above the monthly interest charge takes decades; a payment well above it clears in a couple of years.
| Monthly payment | Time to clear | Total interest | Total paid |
|---|---|---|---|
| $92 (a cent above break-even) | 25 yr 10 mo | $23,462 | $28,462 |
| $100 | 11 yr 5 mo | $8,678 | $13,678 |
| $150 | 4 yr 4 mo | $2,798 | $7,798 |
| $200 | 2 yr 10 mo | $1,750 | $6,750 |
| $300 | 1 yr 9 mo | $1,021 | $6,021 |
| $500 | 1 yr 0 mo | $574 | $5,574 |
The first two rows are the ones that matter. Monthly interest on $5,000 at 22% is $91.67, so a $92 payment is 33 cents of principal and the rest interest. It does technically clear the debt — in 25 years and 10 months, costing $23,462, nearly five times what you borrowed. Below $91.67 it never clears at all. Move to $100 and it drops to eleven and a half years and $8,678; at $200 it is under three years and $1,750.
Work out your own break-even first: balance × APR ÷ 12. Anything below that number is not repayment, it is rent.
Avalanche or snowball with several debts
The method is the same either way. Pay the minimum on every debt, then put every spare dollar into one of them until it is gone, then roll that whole payment into the next. The only question is which debt goes first.
| Avalanche | Snowball | |
|---|---|---|
| Order by | Highest interest rate | Smallest balance |
| Total interest | Always lower | Higher |
| First debt cleared | Can take a long time | Quickly |
| Risk | Losing motivation | Paying more interest |
Avalanche is mathematically optimal without exception. But the interest difference between the two is typically a few hundred dollars, while the difference between finishing a plan and abandoning it is thousands. If clearing a small card in two months is what keeps you going, that is a legitimate reason to choose snowball, and anyone telling you otherwise is optimising the wrong variable.
The rolling part is where the power is either way. When a debt clears, its payment does not go back into your budget — it joins the attack on the next one. Each payoff makes the following one faster, which is why the last debts fall much quicker than the first.
Which debts to attack, and which to leave
| Debt | Typical APR | Priority |
|---|---|---|
| Payday loan | 200%+ | Immediate |
| Store card | 25 to 30% | Very high |
| Credit card | 18 to 25% | High |
| Personal loan | 7 to 15% | Medium |
| Car loan | 5 to 10% | Low |
| Student loan | 4 to 8% | Low |
| Mortgage | 6 to 7% | Lowest |
Two things worth doing before any of this: capture any employer match on a retirement account, which is a guaranteed 50 to 100% return that beats paying off almost any debt, and keep a small emergency buffer so an unexpected bill does not go straight back onto the card you just cleared. A thousand dollars set aside is usually enough to stop the cycle restarting.
Things that make it harder than the arithmetic suggests
- Still using the card. No payoff plan survives new charges. Freeze it or remove it from saved payment details.
- Consolidating without changing the payment. A lower rate helps only if you keep paying the old amount; otherwise you have just extended the term.
- Treating a balance transfer as progress. It moves the debt. The payment is what clears it.
- Paying extra without specifying "principal only" on instalment loans, where some servicers simply advance the due date instead.
- Ignoring a payday loan because the balance is small. At 200%+ APR it is the most expensive money on the list by a wide margin.
For a single card with a percentage-based minimum, the credit card payoff calculator simulates what the minimum actually does. For fixed-instalment debt, the loan calculator shows the amortisation.
Estimate only — not financial advice. Rates and terms vary by lender.
How this debt payoff calculator works out its numbers
Payoff time uses the closed-form solution n = −ln(1 − rB÷P) ÷ ln(1+r), where B is the balance, P the monthly payment and r the monthly rate (APR ÷ 12). Total interest is payment × n − balance.
- A payment at or below the first month's interest returns "never" rather than a number, because the balance does not fall. The tool also reports the minimum payment needed to make progress, which is balance × r + $1.
- Fixed payment assumption. This models a constant monthly amount. Percentage-based credit card minimums shrink with the balance and behave very differently; the credit card payoff calculator simulates that case.
- Monthly compounding at APR ÷ 12. Most US card issuers use a daily periodic rate on the average daily balance, which gives a slightly higher figure.
- Single debt. Avalanche and snowball across multiple debts are described in the guide but not calculated; run each debt separately and roll the payment forward as each clears.
- Not modelled: new charges, fees, penalty APRs and promotional rates.
Reviewed September 2026.
Figures reviewed . Every worked example on this page is checked against the calculator above.
Debt Payoff Calculator: frequently asked questions
How can I pay off debt faster?
Pay well above the monthly interest charge, target one debt at a time while paying minimums on the rest, and roll each cleared payment into the next debt. On $5,000 at 22%, going from $100 to $200 a month saves $6,928 of interest.
Why won't my balance go down?
Because your payment is close to the monthly interest. On $5,000 at 22% that interest is $91.67, so a $92 payment leaves almost nothing for principal and the debt is effectively permanent. Calculate balance × APR ÷ 12 to find your break-even.
How long to pay off $5,000 in debt?
Two years ten months at $200 a month at 22% APR, costing $1,750 in interest. At $100 a month it takes eleven and a half years and costs $8,678 — nearly twice the original balance.
What is the debt avalanche method?
Paying minimums on everything and putting every spare dollar into the highest-interest debt first, then rolling that payment into the next highest. It always costs the least interest of any ordering.
Is snowball or avalanche better?
Avalanche always costs less, usually by a few hundred dollars. Snowball clears the smallest balance first and builds momentum. Since abandoning a plan costs thousands, choosing the method you will actually finish is the sound decision.
Should I pay off debt or save first?
Capture any employer retirement match first, since a 50 to 100% match beats paying off almost any debt. Keep a small emergency buffer of around $1,000 so a surprise bill does not go back on the card, then attack the debt.
Which debt should I pay off first?
By rate: payday loans at 200%+ are urgent, store cards at 25 to 30% and credit cards at 18 to 25% are high priority, while mortgages and student loans at 4 to 8% are the least pressing.
Does debt consolidation actually help?
Only if you keep paying the old amount. A lower rate with a longer term and a smaller payment can cost more in total. Consolidation changes the rate; the payment is what clears the debt.