Debt Payoff Calculator
See how adding a little extra to your monthly payments can save you thousands in interest and shave years off your debt.
Must be at least $150 to cover interest
This is the "Scenario 2" magic number!
7 yrs, 10 mths
Time to debt free
3 yrs, 11 mths
Time to debt free
The Power of Extra Payments
By adding $100/mo, you save:
$4,655
and 3 yrs, 11 mths of payments
Why Debt Compounding Hurts
Reverse Compounding
When you invest, compound interest works for you. When you have debt, it works against you. Interest is charged on your principal, and if not paid in full, that interest gets added to your balance, creating a larger base for the next month's interest calculation.
The Minimum Payment Trap
Banks design minimum payments to be mostly interest, with only a tiny fraction going towards the principal. This keeps you in debt for decades. As shown in the calculator, adding even a small amount like $50 or $100 directly to the principal can cut years off your loan term.