Debt Payoff Calculator
Calculate how long it will take to pay off your debt and compare payoff strategies.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
How long will it take to pay off my debt?
The payoff time depends on your debt balance, interest rate, and monthly payment amount. Making only minimum payments can take decades. Extra payments dramatically reduce both time and total interest paid.
What is the debt avalanche method?
The avalanche method prioritizes paying off the highest interest rate debt first while making minimum payments on others. This mathematically saves the most money on interest over time.
What is the debt snowball method?
The snowball method pays off the smallest balance first, regardless of interest rate. The psychological wins from eliminating debts quickly can provide motivation to continue, even though it costs more in interest.
Should I pay off debt or save first?
A common approach is maintaining a small emergency fund ($1,000-$2,000) while targeting high-interest debt (above 7-8%). For low-interest debt, many people save and pay debt simultaneously. The decision depends on your specific situation.
How much extra should I pay on debt each month?
Any extra amount reduces total interest paid. Even an additional $50-100 monthly can cut years off payoff time. Consistent extra payments compound in effect over time.
Does paying off debt improve my credit score?
Yes, paying down debt typically improves your credit score by reducing your credit utilization ratio. However, closing old accounts after payoff can temporarily lower your score due to reduced credit history length.