Find out exactly when you will be debt-free and how much interest you can save
High-interest debt is expensive because a large portion of every payment goes toward interest rather than reducing your actual balance. On a credit card with 20% interest, if you only make the minimum payment, it can take over a decade to clear a relatively small balance — and you will pay far more in interest than you originally borrowed.
Our Debt Payoff Calculator shows you exactly how long it will take to become debt-free based on your current balance, interest rate, and monthly payment. More importantly, it shows what happens when you add even a small extra amount to your monthly payment.
If you have multiple debts, there are two popular strategies for paying them off. The avalanche method focuses on paying off the highest-interest debt first while making minimum payments on others. This minimises total interest paid and is mathematically optimal.
The snowball method pays off the smallest balance first regardless of interest rate, then applies that payment to the next smallest. It provides faster psychological wins and can be more motivating for some people. Use our calculator to model each debt individually and compare your options.
Even a small extra monthly payment can dramatically reduce your payoff time and total interest paid. Adding just $50–$100 extra per month can often cut years off a debt repayment timeline and save thousands in interest.
Pro tip: If you receive a bonus, tax refund, or any windfall, consider applying it directly to your highest-interest debt as a lump sum. Even a single extra payment early in the debt's life can save a disproportionately large amount of interest over time.
Even $50–$100 extra per month can save thousands in interest and cut years off your repayment timeline. Enter your current details and an extra amount in the calculator to see the exact impact immediately.
If your monthly payment is less than or equal to the monthly interest charge, your balance will never decrease — it will actually grow over time. The calculator will flag this as 'payment too low'. You must pay at least the monthly interest plus some principal.
The avalanche method (highest interest first) saves the most money mathematically. The snowball method (smallest balance first) provides faster wins and can be more motivating. Use this calculator for each debt to model both strategies and choose what works for you.
If your debt's interest rate is higher than your expected investment return, paying off the debt first is the mathematically better choice. For low-interest debt (below 5%), investing may produce better long-term outcomes. Consider both the numbers and your personal comfort with carrying debt.