How the maths works
How to use it
- Enter the balance and the APR from your statement.
- Enter your current monthly payment. If it is the minimum, keep it as the minimum for now — you want to see that number honestly.
- Now add $25 in the extra field and watch both the time and the interest fall.
- Repeat for your highest-APR debt first.
A worked example
A $5,000 balance at 22.9% APR paying $150 a month takes 4 years 7 months and costs $3,235 in interest. Add $25 a month and it becomes 3 years 6 months and $2,251 — 13 months and $984 saved for $25. That is a better guaranteed return than any investment on offer, because avoiding 22.9% interest is a 22.9% return.
Where this sits in the Financial Literacy resource
A calculator tells you where you are. It does not tell you what to do next, and a number without a plan behind it tends to produce anxiety rather than progress. These stages are free, need no account, and cover the decision this calculator is measuring.
Common questions
How much faster will an extra $25 a month pay off my debt?
On a typical $5,000 credit card balance at 22.9% APR, an extra $25 a month cuts roughly a year off the payoff and saves close to $1,000 in interest. The effect is larger than most people expect because every extra dollar goes entirely to principal, and principal is what generates next month’s interest.
Why does paying only the minimum take so long?
Minimum payments are typically calculated as 1–3% of the balance, structured so that most of the payment covers interest and only a sliver touches the principal. As the balance falls the minimum falls with it, which stretches the timeline further. Paying a fixed amount rather than the shrinking minimum is a meaningful improvement by itself.
Is it worth paying off debt instead of investing?
When the debt carries a high interest rate, yes. Clearing a 22.9% APR balance is a guaranteed 22.9% return with no market risk, which no investment reliably offers. The calculation shifts for low-rate debt — a 4% student loan or a 3% mortgage is a different question from a credit card.
What this calculator is not
It is an educational model, not a projection and certainly not advice. It knows nothing about your income, your state, your debts or your benefits status, and it ignores taxes and fees unless the page says otherwise. If you receive SSI or SSDI some of this maths works differently and getting it wrong can cost you eligibility — start with the Disability Wealth Guide instead. Our sourcing and correction policy is on the editorial standards page.
Nothing here is stored. Every calculation runs in your browser. No numbers are transmitted, logged or saved to any server, and no account is required. Close the tab and it is gone.