Debt payoff calculator
When the balance reaches zero at a fixed monthly payment, and how much of what you pay goes to interest.
4 yr 8 mo
June 2031
$22,400
This calculator assumes fixed monthly payments and a fixed interest rate. Actual results may vary based on payment timing and rate changes.
How long the debt actually takes — and what changes it
The minimum payment is designed to keep the account current, not to clear it. The difference between the two is usually the interest rate applied to a balance that barely moves.
Why a small balance can take years
At 19.9% APR, an 8,000 balance repaid at 250 a month takes 46 months and costs about 3,498 in interest. Raising the payment to 300 cuts that to 36 months and about 2,649 in interest: 50 more a month saves ten months and roughly 849.
The reason is that early payments are mostly interest. In the first month, 19.9% a year on 8,000 is about 133 of interest, so only 117 of the 250 reduces the balance. As the balance falls, more of each payment goes to principal — but slowly, which is why the last years feel faster than the first.
Avalanche versus snowball
Avalanche: pay the minimum on everything, put every spare euro against the highest APR first. It minimises total interest and is the mathematically better order. Snowball: clear the smallest balance first, regardless of rate, then roll the payment into the next one. It costs a little more interest but produces visible wins, which is why it often survives contact with real life.
The best method is the one you finish. If the numbers are close — two debts at 18% and 19% — take the psychological win. If one debt is at 24% and another at 6%, the order matters too much to ignore.
What the calculator does not include
It assumes a fixed rate. Variable-rate debt can move against you. It does not model new borrowing, which is the most common reason a payoff plan fails: a cleared card gets used again. It also ignores the effect on your credit score, which depends on utilisation and payment history rather than on the speed of repayment.
Before optimising, check whether the rate can be reduced: a balance transfer, a restructuring loan, or a call to the lender often beats any repayment strategy. And keep a small buffer while repaying — a plan that leaves you with no cash for a repair usually ends in new debt.
Common questions
- Should I pay off debt or invest first?
- Compare the after-tax interest rate with the expected after-tax return. A guaranteed 19.9% saving is hard for any investment to beat; a 3% car loan is a different decision. Keep any employer retirement match first.
- Does paying more than the minimum hurt my credit score?
- No. Paying down balances lowers utilisation, which usually helps. Closing the account afterwards can hurt, because it reduces available credit — keep it open if it costs nothing.
- What is a good debt payoff rate?
- One that clears the balance before the interest dominates. If the monthly payment is below the monthly interest, the balance grows no matter how disciplined you are — that is the line to fix first.