The number this tool exists for
Every debt has a hidden threshold: the monthly interest. Pay less than that and the balance grows even though you are paying; pay just above it and the debt takes years to clear; pay meaningfully above it and the timeline collapses. This calculator makes that threshold visible — if your payment is below it, the tool says so plainly instead of printing a comforting number.
Minimum payments are designed to be slow
On credit cards and store accounts, the minimum payment is typically set just above the interest, which is why a balance can feel permanent. Try your real balance with the minimum payment, then try adding even a small fixed amount on top. The months-to-clear figure usually falls far faster than the extra amount suggests, because every additional unit goes straight at the principal.
More than one debt?
Run each one through the calculator, then pick an order. Two approaches work:
- Avalanche — highest rate first. Mathematically cheapest: list debts by interest rate, pay minimums on all, and aim every spare unit at the highest rate until it dies. Then roll that whole payment onto the next.
- Snowball — smallest balance first. Slightly more expensive on paper, but clearing a whole debt early is a genuine motivator, and the freed-up payment rolls forward the same way. The best method is the one you will actually sustain.
While you are paying it down
- Stop adding to the balance. A card being paid down and spent on at the same time is a treadmill; the simulation above assumes no new spending.
- Check what the rate really is. If it is quoted flat, or you are not sure, our loan agreement guide shows how to find the true cost.
- Beware "consolidation" offers that stretch the term: a lower payment over a much longer period often costs more in total. Run both through this tool before agreeing — total interest is the comparison that cannot be gamed.
- Keep a small cash buffer even while attacking debt, or the first surprise expense goes straight back on the highest-rate account. The emergency fund guide explains sizing the first tier.
This tool runs entirely in your browser — nothing you type is sent to us or stored. Results are estimates for education, not financial advice; real products carry fees and taxes this generic tool cannot know. More tools: see the full list.