Debt Payoff Calculator
Enter what you owe, your APR, and what you can pay each month — the payoff date and true interest cost update as you type, and the link always carries your numbers.
Why minimum payments barely move the balance
Every month, interest is added to your balance before your payment is subtracted. At 22% APR, a $6,000 balance grows by about $110 in the first month — so of a $200 payment, only $90 actually reduces what you owe. That's why minimums feel like running on a treadmill: most of the money services the interest, not the debt. Rather than relying on a single formula, this calculator simulates your payoff month by month — adding interest, subtracting your payment, repeating until the balance hits zero — which also captures the smaller final payment exactly. If your payment can't outrun the monthly interest, the tool tells you so and shows the minimum that would make progress.
Worked example
A $6,000 balance at 22% APR with a fixed $200 monthly payment takes 44 months — 3 years 8 months — to clear. You pay $8,790.68 in total, of which $2,790.68 is interest: nearly half the original balance again. Nudge the payment to $250 and the timeline drops to 32 months with $1,979.05 in interest. Small increases early are worth far more than they look.
Frequently asked questions
What happens if I pay $50 more each month on my credit card?
More than you'd guess. On a $6,000 balance at 22% APR, paying $200 a month takes 44 months and costs $2,790.68 in interest. Raise the payment to $250 and you're done in 32 months with $1,979.05 in interest — a full year sooner and over $800 kept in your pocket, for $50 a month.
Debt avalanche vs. debt snowball — which is better?
Avalanche means paying extra toward the highest-APR debt first; it minimizes total interest, so it wins mathematically. Snowball pays the smallest balance first; the quick wins help many people stick with the plan. The best method is the one you'll actually follow — either beats paying minimums everywhere.
Does credit card interest compound daily?
Most card issuers accrue interest daily on your average balance, while this calculator compounds monthly as an approximation. The results land very close to reality but won't match your statement to the penny. For planning payoff timelines and comparing payment amounts, the monthly model is more than accurate enough.
Should I pay off debt or save first?
A common, sensible order: build a small emergency buffer first (so a surprise bill doesn't go straight back on the card), then attack high-interest debt aggressively — a 22% APR is a guaranteed 22% return no savings account can match — while still capturing any employer retirement match, which is an immediate 50–100% return. Low-interest debt is more of a judgment call.