Debt Payoff Calculator

See how extra payments can help you pay off debt faster and save on interest.

Loans & Mortgages

Enter values and click Calculate to see results

How it works

The formula

Simulates each month: balance = balance x (1 + monthly rate) - (payment + extra). Runs until the balance hits zero, then compares total interest and months between the standard and extra-payment scenarios.

FAQ

What is the snowball method?

Pay minimums on everything, throw all extras at the smallest balance first. The wins keep coming, which keeps motivation high. Mathematically the avalanche method (highest rate first) saves slightly more in interest.

How much of a difference do extra payments make?

On an 18% credit card, even $100/month extra on a $15,000 balance typically shaves over a year off the payoff and saves several thousand dollars in interest. The higher the rate, the more dramatic the effect.

Related Calculators

Advertisement
Advertisement