How do extra payments help pay off debt?

Every dollar above the interest reduces the principal, which lowers future interest. On high-rate debt, a small extra amount can save years and a lot of interest.

Should I use the snowball or avalanche method?

Avalanche (highest rate first) saves the most money; snowball (smallest balance first) gives quick wins. Both beat spreading extra across all debts.

How much interest can I save?

It depends on the balance, rate and extra amount. Enter them to see the interest saved and months cut from the payoff.

Which debt should I pay extra on first?

The highest APR, usually credit cards. Paying extra on cheap debt while carrying expensive debt costs you money.

Finance

Debt Payoff Calculator

A little extra each month goes a long way against debt, because every extra dollar attacks the principal and erases future interest. Enter your balance, APR and payment to see how much sooner — and cheaper — you clear it.

Your numbers

Result

Payoff with extra

months

Interest saved

$2,132.96

Months saved: 15
Payoff at base paymentmonths: 56

The effect of paying extra
Item	Value
Payoff at base payment	56 months
Payoff with extra	41 months
Months saved	15
Interest saved	$2132.96

Why extra payments work so hard

Interest is charged on the balance, so anything above the interest goes straight to principal. An extra payment shrinks the balance faster, which shrinks next month's interest, which frees up more for principal — a virtuous circle. On high-rate debt, a modest extra amount can cut years off the payoff.

Snowball vs. avalanche

With several debts, two popular orders both work. The avalanche pays the highest APR first, saving the most interest. The snowball pays the smallest balance first, for quick wins and motivation. Either beats spreading extra thinly — focus the extra on one debt at a time.

Make sure the extra hits principal

Tell your lender the extra payment is for principal, not "next month's payment" — otherwise some servicers just advance your due date and keep charging the same interest. And clear the highest-rate debt first: paying extra on a 6% loan while carrying a 22% card is money left on the table.

Informational and educational result. Not a substitute for professional advice.

Frequently asked questions

Sources

Debt repayment strategies (avalanche and snowball)

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