Financial tool
Debt Payoff Calculator
Estimate debt payoff time and interest cost using your balance, APR, and monthly payment.
Payoff time
2y 0m
Estimated interest
$1,970
Estimated total paid
$10,470
Formula
Each month, interest is estimated as balance x APR / 12. The rest of the payment reduces principal. The calculator repeats this until the balance reaches zero.
Example calculation
If you owe $8,500 at 21.5% APR and pay $450 per month, part of each payment goes toward interest and the rest reduces the debt balance. Paying more than the minimum can shorten the timeline and reduce total interest.
FAQ
Why does APR matter so much for debt payoff?
A higher APR adds more monthly interest, so less of each payment goes toward principal unless you increase the payment.
What if my payment is too low?
If the payment does not cover monthly interest plus some principal, the balance may not fall. The calculator flags that situation.
Should I use avalanche or snowball payoff?
Avalanche targets the highest APR first to reduce interest. Snowball targets the smallest balance first for momentum. The best choice depends on behavior and goals.