Loan Payoff Calculator
Calculate when you'll be debt-free and see how much interest you save with extra payments.
Your Loan
How to Pay Off Debt Faster
Even small extra payments can dramatically reduce both the time it takes to pay off debt and the total interest you'll pay. This is because every extra dollar goes directly to your principal balance, reducing future interest charges.
Example: $15,000 at 20% APR
With the minimum payment of $350/month, you'd take 5 years and pay $4,800 in interest. Add just $100/month extra, and you'll be debt-free in 3.5 years and save over $1,800 in interest.
Debt Payoff Strategies
- Avalanche method - Pay minimums on all debts, throw extra at the highest-interest debt first. Saves the most money.
- Snowball method - Pay minimums on all, throw extra at the smallest debt first. Better for motivation.
- Balance transfer - Move high-interest credit card debt to a 0% APR card for 12-21 months.
- Debt consolidation loan - Combine multiple debts into one with a lower rate.
Frequently Asked Questions
Should I pay off debt or invest?
If your debt has interest above 7-8% (most credit cards), pay it off first. If it's below 5% (most mortgages), investing usually wins long-term. Always get any 401(k) employer match before paying extra on debt.
Can I really save thousands with small extra payments?
Yes. On high-interest debt like credit cards (20%+ APR), even $50-100 extra per month can save thousands. Try different amounts in this calculator to see for yourself.
Are there penalties for paying off a loan early?
Most credit cards and personal loans have no prepayment penalties. Some mortgages and auto loans do — check your loan agreement. Federal student loans never have prepayment penalties.