Debt Payoff Calculator

It depends on the balance, the APR and how much above the interest charge you pay each month. A $8,000 balance at 19.99% APR with a $250 monthly payment takes about 47 months and costs roughly $3,700 in interest. Raising the payment to $400 clears it in about 24 months and cuts the interest to around $1,700.

More than the extra amount suggests, because every dollar of extra principal also removes all the future interest that dollar would have generated. On a $8,000 balance at 19.99%, adding $150 a month to a $250 payment saves roughly half the total interest and clears the debt around two years sooner.

The avalanche method — highest interest rate first — always costs less in total interest. The snowball method — smallest balance first — costs a little more but produces visible wins sooner, and studies of real repayment behavior suggest people are more likely to see it through. If the rates are close together, the snowball’s motivational edge often outweighs the small extra cost.

Minimum payments are typically 1%–3% of the balance, only slightly above the monthly interest charge, so very little goes to principal. A balance that could clear in two to three years can take a decade or more, at several times the interest cost. If the minimum is below the monthly interest, the balance grows even while you pay.

Build a small emergency buffer first — one month of expenses is a common starting point — so an unexpected bill does not go straight back onto the card. After that, high-interest debt above roughly 8%–10% is usually the better return: paying off a 20% APR balance is a guaranteed 20% return, which no investment reliably matches. Always contribute enough to capture a full employer 401(k) match, since that is an immediate 50%–100% return.