Find out exactly when you'll be debt-free and how much interest you'll pay. See the impact of paying more than the minimum.
Debt is one of the biggest obstacles to building wealth — but most people have no idea how long it will actually take to pay off, or how much interest they're racking up in the meantime. This calculator gives you a clear, honest timeline so you can take control of your repayment strategy today. Enter your balance, interest rate, and monthly payment to see your payoff date and total interest cost.
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Once you see your payoff timeline, the next step is understanding how to beat it. Even modest increases to your monthly payment can dramatically reduce both the time and cost of paying off debt — thanks to the way interest compounds against you every month you carry a balance.
If you have $5,000 on a credit card at 22% APR and only pay the minimum (~$100/month), it will take over 8 years to pay off — and you'll pay more than $4,000 in interest alone. More than doubling the effective cost of what you originally bought.
The Avalanche Method — Pay minimums on all debts, then throw every extra dollar at the debt with the highest interest rate first. This is mathematically optimal and saves the most money in interest over time.
The Snowball Method — Pay minimums on everything, then attack the smallest balance first regardless of interest rate. Each paid-off account gives you a psychological win and builds momentum. Research shows this method leads to higher completion rates for many people.
Neither method is wrong. The best one is the one you'll actually stick to.
The fastest mathematical approach is the avalanche method — targeting your highest-interest debt first. However, any approach that increases your monthly payment above the minimum will accelerate payoff. Even an extra $50/month on a $5,000 balance can cut your payoff time by years.
If your debt carries an interest rate above 7–8%, paying it off usually beats investing, since you're unlikely to reliably earn more in the market than what high-interest debt costs you. Exception: always contribute enough to get your full 401(k) employer match first — that's an instant 50–100% return that beats nearly any debt interest rate.
Most credit cards charge interest daily — your APR divided by 365. Interest compounds on your outstanding balance, meaning you're paying interest on interest. This is why even a few months of carrying a balance can add significant cost to your purchases.