Debt Payoff Calculator 2026

How payoff is calculated

The tool derives a monthly interest rate from the annual rate, subtracts the interest from your monthly payment first, and uses the rest to reduce the principal. It repeats this month after month until the balance reaches zero.

For example, a 5,000 debt at 12 percent annual interest with a 200 monthly payment clears in a little over two years, with several hundred dollars of interest accruing.

What you enter and what you get

You enter the total amount of debt, the annual interest rate as a percentage, and the amount you can afford to pay each month.

You get the payoff time in months, the total you will pay, and a separate figure for total interest, which makes the true cost of the credit clear.

Tips for paying off faster

Pay off the highest-interest debt, such as a credit card, first, because it generates the most interest. Even a small increase in the monthly payment shortens the term and saves a notable amount of interest.

Consolidating several loans into one can lower the average rate and simplify repayment.

Important warning

If the monthly payment is smaller than the interest that accrues, the debt never shrinks and instead grows. In that case you must raise the payment so that the repayment starts to reduce the principal.