Debt Payoff Calculator
See how fast you can become debt-free
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Payoff (Minimum Only)
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Payoff (With Extra)
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Interest (Minimum)
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Interest (With Extra)
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Time Saved
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Interest Saved
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What is the debt payoff calculator?
A debt payoff calculator shows how long it takes to become debt-free and how much total interest you will pay, based on your balance, interest rate, and monthly payment. It also shows the dramatic impact of making even small extra payments — one of the most powerful motivators for paying off debt faster.
Formula used
Months to payoff = log(payment ÷ (payment − balance × r)) ÷ log(1 + r)
Total interest = (monthly payment × months) − principal
Where r = monthly interest rate = annual rate ÷ 12 ÷ 100
How to use this calculator
- Enter your total debt balance
- Enter the annual interest rate
- Enter your minimum monthly payment
- Enter any extra monthly amount you can pay (optional)
- Click Calculate Payoff — both scenarios compared side by side
Example
Example — Personal loan ₹2 lakh at 18% APR:
| Scenario | Monthly | Months | Total Interest |
|---|---|---|---|
| Minimum only | ₹5,000 | 51 | ₹55,000 |
| +₹2,000 extra | ₹7,000 | 33 | ₹31,000 |
| Savings | 18 months | ₹24,000 |
Paying just ₹2,000 extra per month saves ₹24,000 in interest and clears debt 18 months sooner.
Frequently asked questions
Avalanche: pay off highest interest rate first (saves most money). Snowball: pay off smallest balance first (builds psychological momentum). Mathematically, avalanche wins — but both beat minimum payments.
If debt interest > expected investment return, pay debt first. Credit card at 36% is always worth clearing before investing. Home loan at 8.5% is borderline — keep investing in equity (12%+ expected) while paying regular EMIs.
Yes. Call your bank and request a rate reduction if you have a good payment history. You can also balance-transfer to a lower-rate card or take a personal loan to consolidate high-interest debt.