MoneyMathHQ

Debt payoff

See exactly when you'll be debt-free, how much interest you'll pay, and what a little extra each month actually saves you.

Inputs

Months to pay off
Debt-free in May 2029
34
Total interest paid
$1,749.88
Total amount paid
Balance + interest
$6,749.88
If this balance were at 0% APR for 18 months instead, you'd save about $1,637.39 in interest.

How this is calculated

Each month interest accrues on whatever balance is left: interest = balance × (APR ÷ 12). That interest gets added to the balance, then your payment comes off the top. Early on, most of your payment is just covering interest — only what's left over actually chips away at the principal. The final month is a partial payment: you only owe whatever balance remains plus one last month of interest.

Worked example. A $5,000 balance at 22% APR paying $200/month: month 1 interest is $5,000 × 0.22 ÷ 12 ≈ $91.67, so only $108.33 of your $200 actually reduces the balance. Simulating month by month, you're debt-free in 34 months having paid $1,749.88 in interest — more than a third of the original balance.

Why paying more than the minimum matters

Credit card minimums are designed to keep you in debt for as long as possible. Every extra dollar above the minimum goes straight to principal — and because interest is charged on whatever's left, cutting the balance faster compounds in your favor. Adding just $50/month to your current inputs would make you debt-free 8 months sooner and save $464.16.

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