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Debt Payoff Calculator

Calculate your debt payoff timeline

Time to Pay Off

3 years 11 months

Total Interest

$3,967

Total Payment

$13,967

Monthly Payment

$300

$
%
$

Months to Payoff

47

3 years 11 months

Total Interest

$3,967

Interest paid over life of debt

Total Payment

$13,967

Principal + Interest

Payoff Date

January 2030

Estimated completion date

Frequently Asked Questions

Q

How do I calculate when I will be debt-free?

Payoff time = complex formula based on balance, APR, and payment. Example: $10,000 at 18% APR with $300/month = 44 months (3.7 years) and $3,155 interest. Increase to $500/month = 23 months and $1,520 interest. Use our calculator for exact dates.

  • Payment amount has the biggest impact on payoff time
  • Higher interest rates dramatically increase total cost
  • Even $50/month extra makes a significant difference
  • Bi-weekly payments (26 half-payments) = 13 monthly payments/year
$10,000 Debt at 18% APRMonthly PaymentMonths to PayoffTotal Interest
Minimum (~$200)$20079 months$5,840
Standard$30044 months$3,155
Aggressive$50023 months$1,520
Very Aggressive$75015 months$975
Q

What is the debt avalanche method?

Debt avalanche = pay minimums on all debts, put all extra money toward the highest interest rate debt. Once that's paid, roll that payment to the next highest rate. This mathematically minimizes total interest paid over time.

  • Step 1: List all debts by interest rate (highest first)
  • Step 2: Pay minimums on all except highest rate
  • Step 3: Put all extra money toward highest rate debt
  • Step 4: When paid off, roll that payment to next debt
  • Step 5: Repeat until debt-free
DebtBalanceAPRPay Order (Avalanche)
Credit Card A$3,00024%1st
Credit Card B$5,00018%2nd
Personal Loan$8,00012%3rd
Car Loan$15,0006%4th

The avalanche method saves the most money mathematically, but requires discipline. If your highest-rate debt is also your largest, it may take months to see progress. Some people prefer the snowball method for psychological wins.

Q

What is the debt snowball method?

Debt snowball = pay minimums on all debts, put all extra money toward the smallest balance first. Once that's paid, roll that payment to the next smallest. Provides quick wins and motivation, though may cost more in interest.

  • Step 1: List all debts by balance (smallest first)
  • Step 2: Pay minimums on all except smallest
  • Step 3: Put all extra money toward smallest balance
  • Step 4: Celebrate when you eliminate that debt!
  • Step 5: Roll that payment to next smallest debt
DebtBalanceAPRPay Order (Snowball)
Store Card$50026%1st
Credit Card A$3,00024%2nd
Credit Card B$5,00018%3rd
Car Loan$15,0006%4th

Dave Ramsey popularized this method. Research shows people using snowball are more likely to become debt-free because the quick wins keep them motivated. The difference in total interest vs avalanche is often only a few hundred dollars.

Q

Should I pay off debt or save for emergency fund first?

Build a $1,000 starter emergency fund first, then attack debt aggressively. Without emergency savings, any unexpected expense goes on credit cards, restarting the debt cycle. After debt is paid, build full 3-6 month emergency fund.

  • Step 1: Save $1,000 emergency fund (1-2 months)
  • Step 2: Pay off all debt except mortgage (avalanche or snowball)
  • Step 3: Build full 3-6 month emergency fund
  • Step 4: Invest 15%+ for retirement
  • Step 5: Pay off mortgage early (optional)

This is the "Baby Steps" approach popularized by Dave Ramsey. The small emergency fund prevents you from going back into debt when life happens (car repair, medical bill). Credit card interest rates are typically 18-24%, far higher than investment returns, so paying debt first is mathematically sound.

Q

How can I pay off debt on a low income?

Focus on increasing income AND cutting expenses. Sell unused items, pick up side gigs (delivery, freelancing), cut subscriptions, negotiate bills, meal prep. Even an extra $100-200/month makes a huge difference in debt payoff time.

  • Sell stuff: Clothes, electronics, furniture (Facebook, eBay, Craigslist)
  • Side gigs: DoorDash, Uber, Instacart, freelancing
  • Cut subscriptions: Audit all monthly recurring charges
  • Negotiate bills: Call cable, insurance, phone - ask for discounts
  • Reduce food costs: Meal prep, generic brands, no eating out
  • Temporary sacrifices: Cancel gym, entertainment, hobbies

The "beans and rice" phase of debt payoff is temporary. Cut everything possible to free up money for debt. Many people pick up 2-3 delivery shifts per week ($200-400 extra) specifically for debt payoff. Once debt-free, you can restore your lifestyle with intentional spending.

Q

Is debt consolidation a good idea?

Debt consolidation can help if you get a lower interest rate and won't accumulate new debt. Personal loans at 10-12% beat credit cards at 22%. But don't consolidate and then run up cards again - that's how people double their debt.

  • Only consolidate if new rate is lower
  • Close credit cards (or freeze them) to prevent new debt
  • Fixed monthly payment = guaranteed payoff date
  • Avoid companies that charge upfront fees for consolidation
  • Home equity loans risk your house if you can't pay
Consolidation OptionTypical RateBest ForWatch Out For
Personal Loan8-15%Good creditOrigination fees
Balance Transfer Card0% introExcellent creditRate after promo
Home Equity Loan6-9%HomeownersHouse is collateral
401k LoanPrime+1%Emergency onlyPenalties if leave job

Example Calculations

1$10,000 Debt at 18% APR with $300/month Payments

Inputs

Current Debt Balance$10,000
Annual Interest Rate18%
Monthly Payment$300

Result

Time to Pay Off3 years 11 months (47 months)
Total Interest$3,967
Total Payment$13,967

Monthly rate = 18% / 12 = 1.5%. First month: interest = $10,000 × 0.015 = $150, principal paid = $300 - $150 = $150, new balance = $9,850. Each subsequent month the balance drops and less goes to interest. After 47 months the debt is fully paid, with $3,967 in total interest paid over the life of the debt.

2$20,000 Debt at 15% APR with $500/month Payments

Inputs

Current Debt Balance$20,000
Annual Interest Rate15%
Monthly Payment$500

Result

Time to Pay Off4 years 8 months (56 months)
Total Interest$7,899
Total Payment$27,899

Monthly rate = 15% / 12 = 1.25%. First month: interest = $20,000 × 0.0125 = $250, principal paid = $500 - $250 = $250, new balance = $19,750. As the balance decreases over time, more of each $500 payment reduces the principal. The debt is fully paid after 56 months, with $7,899 in total interest -- nearly 40% of the original balance.

Formulas Used

Monthly Interest Charge

Interest = Remaining Balance × (Annual Rate / 100 / 12)

Each month, interest is calculated on the current remaining balance.

Where:

Remaining Balance= Current unpaid debt balance
Annual Rate= Annual interest rate as a percentage

Monthly Principal Reduction

Principal Paid = Monthly Payment - Interest

The portion of your payment that actually reduces the debt balance each month.

Where:

Monthly Payment= Fixed amount you pay each month
Interest= Interest charged that month

Total Interest Paid

Total Interest = Total of All Monthly Interest Charges

The sum of all interest charged each month until the debt is fully paid off. Total Payment = Original Balance + Total Interest.

Where:

Total Interest= Cumulative interest over the payoff period

Strategies for Paying Off Debt

Paying off debt requires a strategic approach to minimize interest and time.

The debt avalanche method focuses on high-interest debt first to save money.

Increasing monthly payments even slightly can significantly reduce payoff time.

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Last Updated: Feb 12, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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