Calculator
Debt Payoff Calculator: Compare Repayment Speed and Interest Saved
Compare minimum-payment debt payoff against a faster monthly budget to see time and interest differences.
Overview
Debt payoff calculator: compare minimum vs. accelerated payments
This calculator simulates two payoff scenarios on the same starting balance: paying the minimum monthly amount versus paying a higher planned amount. It is built to show, in months and dollars, what the extra payment buys.
Debt payoff comparison
What it does
Two simulations, one output
For each scenario the calculator runs the same month-by-month payoff loop: interest accrues at APR ÷ 12; payment is applied; remaining balance carries to the next month. The output is months to payoff and total interest paid for both the minimum-payment and planned-payment paths.
Worked example
Why $100 extra per month matters
A $12,000 balance at 19.99% APR with a $320 minimum payment retires in roughly 67 months and costs about $5,470 in interest. The same balance with a $475 planned payment retires in roughly 32 months and costs about $2,490 in interest — a difference of nearly $3,000 in total cost and more than two years off the timeline.
Two methods
Avalanche vs. snowball
This tool simulates a single balance. When you have multiple debts, two well-known strategies exist: avalanche (pay highest APR first, mathematically optimal) and snowball (pay smallest balance first, behaviorally easier for some). The CFPB does not endorse either; both work if followed. Run the math on your specific balances with the avalanche vs snowball calculator.
FAQ
Common questions
Should I tackle one debt at a time or split extra payments?
Mathematically, concentrating extra payments on the highest-APR debt minimizes total interest. Behaviorally, some borrowers stick with payoff better when they see quick wins on small balances. The CFPB does not pick one over the other; both work if maintained.
Does this account for cards still being used?
The single-balance simulator assumes no new charges. If you are still actively charging on the same card, the “new monthly charges” field on the credit card interest calculator gives a more realistic picture.
What APR should I use if I do not know mine?
Check your most recent statement; the APR is disclosed in plain language. For multiple cards, use the weighted average by balance for a single-balance estimate or run each card separately.
Sources & Methodology
Where we pulled the numbers
- CFPB · Debt repayment strategies — CFPB explainer on debt management plans and repayment approaches.
- FTC · Coping with debt — FTC guidance on negotiating with creditors and avoiding scams.
- Federal Reserve · Household Debt and Credit Report — Quarterly New York Fed Center for Microeconomic Data report.
This guide was created with AI-assisted drafting and human editorial review by Javi Pérez. Figures, examples, and explanations are checked against public sources including CFPB, the Federal Reserve, FDIC, BLS, FTC, and SEC where applicable. Content is reviewed quarterly. Javi Pérez is not a licensed financial advisor, CPA, CFP, loan officer, tax professional, or attorney. This content is educational only and does not replace advice from a qualified professional.
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