Debt Payoff Calculator
Calculate your debt elimination strategy and timeline
Debt Details
Payoff Results
Disclaimer
These calculations are estimates for informational purposes only. Actual payoff times may vary based on payment schedules, fees, and interest rate changes. Consult with financial advisors for personalized debt management strategies.
What is Debt Payoff Strategy?
A debt payoff strategy is a systematic approach to eliminating debt by making strategic payments. Our calculator helps you understand how extra payments can significantly reduce both the time to become debt-free and total interest paid.
By making additional payments toward your principal balance, you can save thousands in interest and achieve financial freedom years earlier.
Debt Payoff Methods
Debt Snowball Method
Pay minimum on all debts, then put extra money toward the smallest balance first. Provides psychological wins and momentum.
Debt Avalanche Method
Pay minimum on all debts, then put extra money toward the highest interest rate debt first. Saves the most money mathematically.
Extra Payment Strategy
Make additional payments toward principal balance to reduce interest and payoff time, as calculated by our tool.
Frequently Asked Questions
Should I pay extra toward debt or save money?
Generally, pay off high-interest debt first (above 6-8%), but maintain a small emergency fund. Compare debt interest rates to potential investment returns.
How much extra should I pay toward debt?
Pay as much extra as your budget allows while maintaining essential expenses and a small emergency fund. Even $50-100 extra monthly makes a significant difference.
What types of debt should I prioritize?
Prioritize high-interest debt like credit cards (15-25% APR) over low-interest debt like mortgages (3-6% APR). Consider tax implications for mortgage interest deductions.