What is Debt Payoff?
The Debt Payoff Calculator shows how quickly you can become debt-free and how much interest you save by making extra payments. Whether you have credit card debt, personal loans, or multiple EMIs, this calculator reveals the true cost of debt and the power of accelerated repayment.
Two popular strategies: The Avalanche Method (pay highest interest first — mathematically optimal, saves the most money) and the Snowball Method (pay smallest balance first — psychologically motivating, builds momentum). Both work — the best method is the one you stick with.
The impact of extra payments is dramatic: on ₹3L debt at 18% interest, paying just ₹5,000 extra per month saves ₹47,000+ in interest and cuts repayment time by 10+ months.
In India, high-interest debt typically includes: credit cards (36-42% APR), personal loans (12-18%), car loans (8-12%), and education loans (8-12%). Prioritize paying off credit card debt first — it's 2-3× more expensive than any other debt.
Formula
Months to payoff = -ln(1 − B×r/P) / ln(1+r) Total Interest = (P × months) − B Interest Saved = Interest(without extra) − Interest(with extra)
Example — ₹3L debt at 18%, ₹15K/month: Without extra: 25 months, ₹73,700 interest With ₹5K extra: 17 months, ₹26,400 interest Saved: ₹47,300 and 8 months!
The power of extra payments: ₹1K extra → saves ₹15,000 ₹3K extra → saves ₹35,000 ₹5K extra → saves ₹47,000 ₹10K extra → saves ₹62,000
How to use this Debt Payoff Calculator?
1. Enter total debt amount across all loans/cards. 2. Enter the average interest rate (weight by balance if rates differ). 3. Enter your current monthly payment. 4. Enter any extra amount you can pay above the minimum. 5. See how many months faster you'll be debt-free and total interest saved.