Enter your total debt balance, annual interest rate, and monthly payment amount. The calculator shows your exact debt-free date, total interest paid, and a month-by-month amortization schedule.

Experiment with different payment amounts to see how increasing your monthly payment accelerates your payoff timeline. Even $50 or $100 extra per month can make a significant difference.

Understanding how debt repayment works empowers you to make better financial decisions. Every dollar you pay above the minimum goes directly to reducing your principal, which reduces the interest that accrues next month — creating a positive feedback loop.

Why Minimum Payments Are Dangerous

Credit card minimum payments are typically set at 1-3% of the balance or a fixed amount (whichever is greater). At these rates, a $10,000 credit card balance at 20% APR would take over 25 years to pay off and cost more than $19,000 in interest — nearly double the original balance.

The Power of Extra Payments

Increasing your payment by just 50% can cut your payoff time by more than half. Using the same $10,000 example, going from a $200 minimum to $300/month cuts the payoff time from 9+ years to under 4 years and saves over $4,000 in interest.

Strategies for Finding Extra Money

Consider the debt latte factor — small daily expenses that add up. A $5 daily coffee is $150/month toward debt. Selling unused items, taking on a side gig, or temporarily reducing discretionary spending can free up significant cash for accelerated repayment.