Debt Payoff Calculator
Find out how long a credit card or loan will take to clear, how much to pay each month to be debt-free by a date, or which order to tackle several debts in. Compare the snowball and avalanche methods side by side.
Your result
Enter your debt details above to see the result.
Assumes a fixed rate, on-time payments, no new charges and no fees. Real statements can differ slightly. This calculator is for general information and is not financial advice.
Why debt takes so long to pay off
When you owe money on a credit card or a loan, the lender charges interest on what you still owe. Each month, a slice of your payment goes to cover that interest, and only what is left over reduces the debt itself. The higher the interest rate and the smaller your payment, the bigger the share that disappears into interest.
That is why paying only the minimum on a credit card can drag on for years. The balance shrinks slowly, the interest keeps being charged, and the total you hand over can be far more than what you originally borrowed. This calculator shows you the real picture in plain numbers, and helps you find a plan that gets you out faster.
How to use this calculator
- One debt or card: enter the balance, the interest rate (APR) and your monthly payment. You get the time it takes, the total interest and the date you would be debt-free. Or switch to “the payment needed to finish on time” and enter how many months you want.
- Several debts: list each debt with its balance, rate and minimum payment, then enter the total you can pay each month across all of them. You get a side-by-side comparison of the avalanche method, the snowball method and paying only the minimums, plus the order in which your debts disappear.
Your APR is the yearly interest rate printed on your statement or loan agreement. Your minimum payment is also on the statement.
The maths in simple form
Monthly rate = APR ÷ 12
Months to pay off = −ln(1 − balance × monthly rate ÷ payment) ÷ ln(1 + monthly rate)
Payment needed = balance × monthly rate ÷ (1 − (1 + monthly rate)−months)
Total interest = total paid − original balance
For several debts the calculator runs the plan month by month. It charges interest on each debt, pays every minimum, and then puts whatever is left of your monthly budget on the debt your chosen method says to attack first. When a debt is cleared, its minimum payment is freed up and rolls onto the next target, which is what makes both methods speed up over time.
Worked examples
A credit card with a fixed payment
You owe 3,000 on a card charging 21% APR and pay 100 a month. That takes 3 years 7 months and you pay about 1,291.13 in interest. Pay 200 a month instead and the card is gone in 1 year 6 months, with only 510.67 in interest. Doubling the payment cuts the time by more than half, and saves around 780.46.
Working out the payment you need
You owe 5,000 at 18% APR and want to be debt-free in 24 months. The monthly payment that does it is about 249.62, and you will have paid roughly 5,990.89 in total.
Three debts, two methods
Card A: 4,500 at 22.9% with a 120 minimum. Card B: 1,800 at 19.9% with a 55 minimum. A loan: 7,200 at 8.5% with a 160 minimum. You have 600 a month to spend. With the avalanche method you are debt-free in 2 years 2 months and pay about 1,992.84 in interest. With the snowball method it also takes 2 years 2 months, with 2,049.81 in interest, so the avalanche saves about 56.97. Paying only the minimums would take 5 years 7 months and cost about 5,800.14 in interest.
Snowball or avalanche?
The avalanche method puts every spare pound, dollar or rupee on the debt with the highest interest rate, while paying the minimum on the others. Because high-rate debt costs you the most, this normally saves the most money in interest.
The snowball method does the opposite in one way: it attacks the smallest balance first, whatever the rate. You clear whole debts sooner, which can be a real boost to motivation, and the freed-up minimum then rolls onto the next debt.
Neither is always right. If your debts have similar rates, the two plans end up close together, as in the example above, so pick the one that keeps you going. If one card has a much higher rate than the rest, avalanche usually pulls ahead. The comparison table on this page shows the gap for your own numbers.
What paying more each month does
This table shows a 5,000 balance at 20% APR, paid off with five different monthly amounts.
| Monthly payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| 100 | 9 years 1 month | 5,840.10 | 10,840.10 |
| 150 | 4 years 2 months | 2,359.09 | 7,359.09 |
| 200 | 2 years 9 months | 1,522.10 | 6,522.10 |
| 300 | 1 year 8 months | 906.81 | 5,906.81 |
| 500 | 1 year | 515.22 | 5,515.22 |
The pattern is the same for any debt: small increases in the payment make a large difference in both time and interest, especially at the start.
Ways to pay off debt faster
- Pay more than the minimum, even a little. Extra money goes straight to the balance.
- Stop adding to the debt. New charges undo your progress.
- Pay on time. Late fees and penalty rates make everything slower.
- Check for a lower rate. Some people move a balance to a card with a lower rate, but watch out for transfer fees and for the date the low rate ends.
- Build a small emergency cushion. It stops a surprise bill from sending you back to the card.
- Ask for help early. If you are struggling, talk to your lender, or to a non-profit credit counselling service in your country.
This calculator is for general information and is not financial advice. A qualified adviser can look at your complete situation.
Common mistakes
- Using the wrong rate. Cards often have different rates for purchases and cash advances. Use the rate that applies to your balance.
- Ignoring fees. Annual fees and late fees are not included here.
- Counting on a promotional rate lasting. When a 0% period ends, the normal rate starts.
- Leaving out a debt. List every debt you want in the plan, including small ones.
- Entering a budget below the total of your minimums. The minimums are the least you must pay.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on three things: the balance, the interest rate (APR) and how much you pay each month. Enter them on the One debt tab and the calculator shows the time, the total interest and the date you would be debt-free. If your payment is smaller than the interest charged each month, the balance never goes down, and the calculator will tell you.
How much do I need to pay each month to clear a debt by a certain date?
Choose "I want to be debt-free in" on the One debt tab, type the number of months, and the calculator finds the level monthly payment that clears the balance, including interest, in exactly that time.
What is the difference between the snowball and avalanche methods?
Both start by paying the minimum on every debt and putting all your spare money on one target debt. The avalanche method targets the debt with the highest interest rate first, which usually costs the least in interest. The snowball method targets the smallest balance first, which clears debts sooner and many people find more motivating. The Several debts tab compares both.
Which method is better, snowball or avalanche?
Avalanche usually saves the most money, and snowball can help you stick with the plan because you see debts disappear sooner. The best method is the one you will actually follow. The comparison table shows how big the difference is for your own numbers, and it is often small.
How is the interest calculated?
The calculator turns your yearly rate (APR) into a monthly rate by dividing by 12, charges that interest on the remaining balance each month, and then applies your payment. Real credit cards may work out interest daily and have fees, so your statement can differ a little. Use the result as a close guide.
Why do minimum payments take so long?
A minimum payment is often just a small percentage of the balance plus the interest, so most of it goes to interest and very little reduces what you owe. As the balance falls, the minimum falls too, which stretches the debt out for years. The table on this page shows how much a higher fixed payment changes the picture.
Does the calculator include new purchases, late fees or annual fees?
No. It assumes you stop adding to the debt and pay on time, with no extra fees. If you keep spending on the card, the payoff takes longer than shown.
What happens if my payment is less than the monthly interest?
Then the balance grows instead of shrinking and the debt is never paid off at that payment. The calculator shows the monthly interest so you can see the smallest payment that makes progress.
Can I include loans and cards together?
Yes. On the Several debts tab you can add up to 8 debts of any type. Enter each balance, rate and minimum payment, and then the total amount you can pay in a month across all of them.
Is anything I enter saved or sent anywhere?
No. Everything is calculated in your browser, and nothing you type is uploaded or stored. This calculator is for general information and is not financial advice. If you are struggling with debt, a non-profit credit counselling service in your country can help.
Related calculators
To see how extra payments affect a long loan, try the loan prepayment calculator or the loan EMI calculator. To build savings alongside, use the savings goal calculator, and to see how interest builds when you are on the other side of it, the compound interest calculator.