Debt payoff calculator

Use the balance and APR from your statement

Enter one debt’s balance, annual percentage rate and monthly payment. The estimate adds interest at APR divided by 12, rounded to cents, then applies the payment each month. The last payment may be smaller.

The model assumes a fixed rate, consistent monthly payments, no fees and no new borrowing. Real lenders may use daily interest, different payment dates or multiple rates. Check your lender’s payoff quote before making a final payment.

Check whether the payment reduces the balance

At 24% APR, the first month’s modeled interest on $5,000 is $100. A $100 payment would only cover that interest in this model. The calculator flags payments that are too low to make progress.

A payment just above interest can still take a very long time. The tool stops its projection at 50 years and flags balances that remain. Its smallest progress-making payment is not your lender’s required minimum; always check your statement.

Compare avalanche and snowball

For several debts, the avalanche approach directs extra money toward the highest interest rate while maintaining required payments on the others. The snowball approach targets the smallest balance first, then rolls that payment into the next debt.

Avalanche prioritizes interest costs. Snowball can provide earlier account payoff milestones, but may cost more in interest. This calculator models one balance at a time; it does not simulate either strategy across several debts.

CFPB: How to reduce your debt ↗

Check the payment against your other bills

Use Loaf’s spending history and bill calendar to review what else is due before increasing a debt payment. With Loaf Connect, ask: “Show the bills due this month and my recent spending by category. Help me review where an extra $50 payment could fit.”

Verify the result against your statements, income and other obligations. Loaf and this calculator do not make payments, renegotiate debt or cancel a provider agreement.