Debt Payoff Calculator
Enter your balance, interest rate, and monthly payment to see exactly when you'll be debt-free — and how much you'll pay in interest.
Minimum to make progress: $76/mo
Payoff in
3y 11m
Total Interest
$1,984
Total Amount Paid
$6,984
Debt-Free Date
May 2030
Principal vs. Interest by Year
Ready to track your actual debt?
PenniesTrack's Debt Payoff Planner lets you add all your debts and choose avalanche or snowball strategy — for free.
Start Tracking Debt — FreeFrequently Asked Questions
How is debt payoff time calculated?
Debt payoff time is calculated using amortization: each month, interest is charged on the remaining balance, and your payment reduces that balance. The formula is: months = log(payment / (payment - balance × monthly_rate)) / log(1 + monthly_rate), where monthly_rate = APR / 12 / 100.
What is the minimum payment to pay off debt?
The minimum payment must exceed the monthly interest charge. If your balance is $5,000 at 18% APR, the monthly interest is $75. You must pay more than $75 per month to reduce the principal. Most lenders require a minimum of 1-2% of the balance or $25, whichever is greater.
What is the debt avalanche method?
The debt avalanche method means paying minimum payments on all debts except the one with the highest interest rate — you put all extra money toward that. Once the highest-rate debt is paid off, you move to the next highest. This saves the most money in interest overall.
How much faster can I pay off debt by increasing my monthly payment?
Even small increases make a significant difference. On a $5,000 debt at 18% APR: paying $150/mo takes 44 months and costs $1,540 in interest. Paying $200/mo takes 31 months and costs $1,018 in interest — saving $522 and 13 months just by paying $50 more.
Should I pay off debt or invest?
If your debt interest rate is higher than expected investment returns (~7-10% for stocks), pay off debt first. High-interest credit card debt (18-25% APR) should almost always be paid off before investing. Low-interest debt (under 5%) may be fine to carry while investing.