Enter your current balance, interest rate and monthly payment to estimate your payoff timeline and total interest. Add an extra monthly payment to see how the timeline could change.
Compare your current payment plan with a higher monthly payment.
Compare estimated payoff time, interest and total payments side by side.
Compare your current payment with several higher-payment scenarios.
| Scenario | Monthly Payment | Estimated Payoff Time | Total Interest | Total Payments |
|---|
This annual summary uses your current payment plus the extra monthly amount entered above.
| Year | Beginning Balance | Payments | Principal Paid | Interest Paid | Ending Balance |
|---|
Each month, interest is charged against the remaining debt balance. The portion of your payment left after interest reduces principal.
As principal declines, future interest charges generally decline as well. That is why increasing the amount applied to the debt can shorten the payoff period and reduce estimated interest.
If the monthly payment is equal to or less than the interest being charged, the debt will not amortize normally. The balance may remain unchanged or even grow.
Adding money to the scheduled payment generally directs more of that month's payment toward principal. A lower principal balance means there is less balance on which future interest can be calculated.
Higher-rate debts can accumulate substantial interest when balances are repaid slowly. The same balance and monthly payment can have very different payoff timelines at different interest rates.
Credit cards and other revolving debts may use average daily balance, daily periodic rates, statement cycles, variable APRs and fees. This calculator uses a simplified monthly interest model for educational comparison.
The calculator assumes a fixed annual rate converted to a monthly rate. Actual revolving-credit calculations and account fees may differ.
The payoff period depends primarily on the balance, interest rate and monthly payment. A larger payment generally reduces the repayment period.
Additional principal reduces the outstanding balance sooner. Because future interest is generally calculated using the remaining balance, reducing principal can reduce future interest charges.
If the payment does not exceed the interest charged for the month, the balance will not decline normally. This calculator will display a warning when the entered payment cannot amortize the debt.
It can provide a simplified payoff estimate for a fixed balance and assumed interest rate. Actual credit cards may use daily interest, variable APRs, changing minimum payments, additional purchases and fees.
Yes. The estimate assumes no additional purchases, cash advances, fees or new charges are added to the balance.
The result depends on the balance and interest rate. Use the extra-payment field above to compare your current payment with a payment that is $100 higher.
Actual accounts may use daily interest, statement-cycle timing, variable rates, minimum-payment rules, fees and rounding methods that differ from this simplified monthly model.