Education only — ClearMoneySchool does not provide individualized investment, tax, or legal advice. Why we don't give advice →
← All calculators
Loan payoff calculator

Get out of debt faster — and see what it saves you.

Works for any debt with a balance, an APR, and a monthly payment — credit cards, student loans, auto loans, personal loans. Add an extra payment amount and watch the payoff timeline collapse.

Quick start

$
%

Credit cards: 18-30%. Student loans: 4-8%. Auto: 5-12%.

$

What you're paying right now

What if you paid extra?

$
Educational simulation. Real loan terms vary — check your statement for exact APR, minimum payment, and any fees. Not financial advice.
On your current payment
4.3yr
To pay off completely
$4,899
Total interest you'll pay
$12,899
Total amount paid
With $100 extra each month
2.6yr
New payoff time
$2,798
New total interest
$2,101
Interest saved

Adding $100/month gets you debt-free 1.8 years sooner and saves you $2,101 in interest you'd otherwise hand to the lender.

Avalanche vs snowball

If you have multiple debts, which to attack first?

Avalanche method — pay minimums on everything, throw extra money at the highest-APR debt first. Mathematically optimal — saves the most interest.

Snowball method — pay minimums on everything, throw extra money at the smallest balance first. Gives you wins faster, which keeps people motivated.

Both work. The "right" one is the one you'll actually stick to.

Why high-APR debt is so destructive

The math the credit card companies don't advertise.

A typical credit card charges 24% APR. On an $8,000 balance, that's about $160 a month in interest charges — money that does absolutely nothing for you. If your minimum payment is $250, only about $90 of it actually reduces your balance. The rest is rent on the borrowed money.

That's why minimum payments take forever. On that same $8,000 balance at 24%, paying only the minimum can take 4–5 years and cost $5,000+ in interest — meaning you actually pay $13,000+ for an $8,000 purchase.

Adding even $100/month extra usually cuts the timeline in half and saves thousands. The math works because every extra dollar attacks the balance directly, which means less interest accrues next month, which means more of next month's payment also goes to principal — a virtuous cycle.

Related lessons

Educational simulation only. Actual loan terms vary — confirm APR, minimum payment, fees, and any prepayment terms with your lender. ClearMoneySchool does not provide personalized financial or debt advice.