Free Debt Payoff Calculator

A minimum payment is usually calculated as a small percentage of the balance, so as the balance falls the payment falls with it. Most of each payment covers that month's interest, leaving very little to reduce what you actually owe — which is why a balance can survive for years or even decades.

Targeting the highest interest rate first, the avalanche method, always costs less in total interest. Targeting the smallest balance first, the snowball method, clears individual debts sooner and gives you visible wins. The best method is the one you will actually finish.

A large one, because every extra dollar goes straight at the balance rather than at interest. Enter an extra amount above and the calculator shows both the time you save and the interest you avoid, so you can see the effect of a specific figure rather than guess.

A common approach is to keep a small starter emergency fund, then attack expensive debt, because high-interest debt usually costs more than savings earn. Without any buffer, the next unexpected bill simply goes back on the card you are trying to clear.

Yes. It works for any balance charged monthly interest, including credit cards, store cards, personal loans and overdrafts. Enter the balance, the annual interest rate and what you pay each month to see the payoff timeline.