Debt Payoff Calculator

What this estimate assumes

• Assumes interest compounds monthly on the remaining balance and that you make the same fixed payment every month with no new charges added.
• Doesn't account for promotional/introductory APRs, late fees, or a card issuer's minimum-payment formula, which can differ from a flat fixed payment.

How to use this calculator

1. Enter your current balance — the amount you still owe on the card or loan today.
2. Enter your interest rate as an APR (annual percentage rate). You'll find this on a recent statement or your loan agreement.
3. Enter the fixed amount you plan to pay every month. The calculator assumes this exact amount every month until the balance is gone.
4. Click "Calculate payoff time."
5. Read the result box for your estimated payoff timeline (in months and years) and the total interest you'll pay over that time.
6. If the calculator warns that your payment won't cover the debt, increase your monthly payment until the warning disappears — that warning means your balance would grow forever at that payment level.

Worked example

Take an $8,000 balance at 22% APR, paid down with a fixed $300/month payment. Converting the APR to a monthly rate: 22% ÷ 12 = 1.8333% per month.

Month 1: interest charged = $8,000 × 0.018333 ≈ $146.67. Your $300 payment covers that interest plus $153.33 of principal, so the balance drops to $8,000 + $146.67 − $300 = $7,846.67.

Month 2: interest is now charged on the smaller $7,846.67 balance: $7,846.67 × 0.018333 ≈ $143.86. Balance drops to $7,690.52.

This repeats every month — interest is recalculated on whatever balance is left, and the rest of your $300 chips away at principal. Because the balance keeps shrinking, less of each payment goes to interest and more goes to principal every month, so the payoff accelerates over time. Running that process all the way to $0 (simulated month by month using the calculator's exact formula) takes 37 months — 3 years and 1 month — and the interest charged along the way adds up to approximately $3,083 on top of the $8,000 you borrowed.

That means you'd pay roughly $11,083 in total to clear an $8,000 debt at this rate and payment — a useful reminder of how much a double-digit APR costs over time, and why even a small increase to your monthly payment (try $350 or $400 in the calculator) can meaningfully shorten the payoff and cut the total interest.

Frequently asked questions

Why does the calculator warn that my debt will never be paid off?

That warning appears when your fixed monthly payment is at or below the interest charged in the very first month. If your payment doesn't even cover that month's interest, the balance can never shrink — it either stays flat or grows, no matter how many months pass. You'll need to increase your monthly payment above that first-month interest amount for the balance to actually go down.

Why does the interest amount shown change every month instead of staying fixed?

Because interest here is calculated on your current remaining balance, not your original balance. As you pay down principal each month, the balance shrinks, so the next month's interest charge is a little smaller too. That's why the early payments feel like they barely move the balance, while later payments make much faster progress — more of each one goes toward principal as the interest portion shrinks.

Does increasing my monthly payment by a small amount really make a big difference?

Yes, especially at higher interest rates. Because interest compounds on the remaining balance every month, a slightly higher payment reduces principal faster, which reduces next month's interest, which leaves more of the following payment for principal — a snowball effect in your favor. Try raising the payment amount in the calculator by even $50 and compare the new payoff time and total interest to see the effect on your own numbers.

Does this calculator account for variable or promotional interest rates?

No. It assumes one fixed APR applies for the entire payoff period. If you have an introductory 0% APR period that will expire, a variable-rate card, or a rate that's scheduled to change, the real payoff time and total interest will differ from this estimate — run the calculator again with the new rate once it changes to see the updated picture.

What's the difference between this and a minimum payment on a credit card statement?

Credit card issuers typically calculate minimum payments as a small percentage of your balance (often 1-3%), which means the required minimum payment shrinks along with your balance — and can stretch payoff out for many years longer than a fixed payment would. This calculator assumes you keep paying the same fixed dollar amount every month, which pays off debt dramatically faster than letting the minimum payment drift downward.

Does the total interest number include fees like late fees or annual fees?

No. It only calculates interest that accrues on your balance at the APR you entered. Late fees, annual fees, balance transfer fees, and any new charges added to the balance during the payoff period aren't included — see our full disclaimer for everything this calculator doesn't account for.