How the Debt Payoff Calculator Works
The calculator simulates monthly payments on a declining balance. Each month, interest accrues on the remaining balance, your payment covers the interest first, and the rest goes to principal. Adding extra payments accelerates the payoff dramatically — on a $15,000 credit card at 18%, an extra $100/month saves you $4,500+ in interest.
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Frequently Asked Questions
Debt snowball vs avalanche — which is better?
Avalanche (highest rate first) saves the most money. Snowball (smallest balance first) gives quick wins that keep you motivated. Both work.
How much extra should I pay?
Even $50-100 extra per month can shave years off high-interest debt and save thousands in interest.