Debt Payoff Calculator

Enter your total loan balance, interest rate, and monthly payment amount. The calculator uses amortization math to determine how many months until the balance reaches zero, how much total interest you will pay, and your projected payoff date. Adding extra payments dramatically shortens the timeline.

Even small extra payments make a significant difference. On a $25,000 loan at 7% interest with $400 monthly payments, adding $100/month saves over $3,000 in interest and pays off the loan 2+ years sooner. The higher your interest rate, the more extra payments save.

Compare your debt interest rate to expected investment returns. If your debt charges 8% but investments average 7%, pay the debt first. For low-interest debt below 4-5%, investing may yield better returns. Always maintain an emergency fund regardless of your strategy.

The avalanche method prioritizes paying off the highest-interest debt first, minimizing total interest paid. The snowball method targets the smallest balance first for quick psychological wins. Avalanche saves more money mathematically, but snowball keeps more people motivated to stay on track.

Refinancing to a lower rate reduces your monthly interest charges, meaning more of each payment goes toward principal. A 2% rate reduction on a $30,000 loan can save $5,000+ in interest and shorten payoff by over a year, even with the same monthly payment amount.