DebtFree

Debt Payoff Calculator

The sobering math of minimum payments — and how much extra payments save you.

Current balance

Interest rate (% APR)

Monthly payment

What you entered

Balance: $5,000APR: 19.99%Payment: $200

1
Monthly interest rate
19.99% / 12= 1.6658%
2
Months to pay off
−ln(1 − $5,000.00×r / $200.00) / ln(1+r)= 33 months (2.8 years)
3
Total paid
33 × $200.00= $6,600.00
4
Total interest
$6,600.00 − $5,000.00= $1,600.00

Result

Payoff time: 33 months

Paying $200/month on a $5,000 balance at 19.99% APR, you'll be debt-free in 33 months and pay $1,600 in interest.

Paying off $10,000 of debt at 18% APR

Each row applies a fixed monthly payment to a $10,000 balance at 18% and runs it to zero. The months column is what the calculator returns, rounded up to a whole month.

Monthly payment	Months to clear	Total paid	Total interest
$200	94	$18,800	$8,800
$250	62	$15,500	$5,500
$300	47	$14,100	$4,100
$400	32	$12,800	$2,800
$500	24	$12,000	$2,000
$750	15	$11,250	$1,250
$1,000	11	$11,000	$1,000

The first two rows are the whole argument for paying more than the minimum: an extra $50 a month cuts the payoff from 94 months to 62 and saves $3,300 in interest. Going from $200 to $400 more than saves two thirds of the interest and clears the debt nearly five years sooner. The relationship is steeply non-linear because at low payments most of each instalment goes to interest and the balance barely moves. At 18%, monthly interest on $10,000 is $150, so a $200 payment retires only $50 of principal in month one - and any payment at or below $150 never clears the debt at all, which is what the calculator warns about when the payment is too low.

Minimum payments are designed to be slow

Credit card minimum payments (typically 1-3% of balance) are calculated to keep you in debt for decades — a $5,000 balance at 20% APR with minimum payments takes over 30 years and costs $12,000+ in interest. Even small increases to your payment dramatically reduce both time and interest.

The avalanche vs. snowball method

If you have multiple debts, the avalanche method (pay highest APR first) saves the most money, while the snowball method (pay smallest balance first) provides faster psychological wins. Both beat paying only minimums everywhere.

The power of extra payments

On a $10,000 credit card at 22% APR, paying $200/month takes 9 years and costs $11,680 in interest. Paying $300/month cuts it to 4 years and $4,600 interest — saving $7,080. Even an extra $50/month makes a dramatic difference because it goes directly to principal, reducing the balance that accrues interest.

Frequently asked questions

How long will it take to pay off my credit card?

It depends on your balance, APR, and payment amount. Example: $5,000 at 20% APR with $150/month payment takes 44 months (3.7 years) and costs $1,570 in interest. With only the minimum ($100), it takes 9+ years and costs $4,311 in interest. Use this calculator with your exact numbers.

How do I pay off debt fast?

1) Stop adding to the balance. 2) Pay as much above the minimum as possible. 3) Use the avalanche method (highest APR first) to minimize interest. 4) Consider a 0% balance transfer card (saves interest for 12–21 months). 5) Debt consolidation loan if your credit score qualifies for a lower rate than your current debts.

Should I pay off debt or invest?

Pay off any debt with APR higher than your expected investment return. Credit cards at 20–25% APR: always pay first (no investment reliably beats 20%). Student loans at 4–5%: debatable — investing may win long-term but paying debt is a guaranteed return. A balanced approach: pay minimums on low-rate debt, attack high-rate debt, and invest simultaneously.