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Debt Payoff

See how many months it takes to clear a credit-card or loan balance at a fixed monthly payment, and how much interest you'll pay getting there. It warns you if the payment is too small to ever make progress.

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💡 Good to know: Paying just the minimum sends most of your money to interest; small extra payments can cut years off the balance.

Worked example

Months: 31 · Interest: $1,714.24

How it’s solved

Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.

  1. Each month interest is added to the balance, then your payment is subtracted, until it reaches zero.
  2. Monthly interest rate = APR ÷ 100 ÷ 12
    19.9 ÷ 100 ÷ 12 = 0.016583
  3. Add interest, subtract the payment, repeat until paid off
    $6,000.00 cleared in 31 months
  4. Interest paid = total payments − original balance
    $250.00 × 31 − $6,000.00 = $1,750.00

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Frequently asked

Why does it say 'never'?

If your monthly payment is less than or equal to the interest charged that month, the balance never falls — raise the payment to make headway.

Is interest compounded monthly?

Yes. Each month interest is added, then your payment is subtracted, until the balance reaches zero.

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