Debt Payoff Calculator
Calculate how long to pay off any debt and total interest paid.
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method prioritizes paying off debts with the highest interest rate first while making minimum payments on others. This minimizes total interest paid. For example, if you have a 24% credit card and a 12% car loan, attack the credit card first. You save more money with avalanche vs. snowball, but the snowball may feel more motivating.
What is the debt snowball method?
The debt snowball method pays off the smallest balance first, regardless of interest rate, to gain psychological momentum. Once the smallest debt is paid, roll that payment into the next. Dave Ramsey popularized this. Research shows some people stick with it better than avalanche, even though you pay more total interest.
How long does it take to pay off $5,000 in credit card debt?
At 20% APR with a $150/month payment, it takes about 42 months (3.5 years) and $1,263 in interest. Increasing to $200/month cuts it to 29 months and $785 in interest — saving $478. Doubling your minimum payment dramatically shortens payoff time.
What is the minimum payment on a credit card?
Most cards set minimums at 1–2% of balance or $25, whichever is greater. On a $5,000 balance at 20% APR, the minimum is roughly $100–125/month. At this rate, it takes over 10 years and $6,000+ in interest to pay off. Always pay more than the minimum.
How does credit card interest work?
Credit cards use daily periodic rate (APR ÷ 365). On a $5,000 balance at 20% APR: daily rate = 0.0548%. Daily interest = $2.74. Monthly ≈ $83. That's why minimum payments barely reduce the balance — most of the payment goes to interest, not principal.