Get answers to common questions about debt calculation, extra payments, and achieving financial freedom with PayOff.
The chart shows your remaining debt balance over time. The yellow/gold line represents your standard payment plan, while the green line shows how extra payments accelerate payoff. You can visually see how much faster you'll be debt-free and when your balance reaches zero.
How to read it: The X-axis shows time (months/years), the Y-axis shows your remaining balance in dollars. The steeper the line drops, the faster you're paying off debt!
PayOff uses industry-standard financial formulas with 99.9%+ accuracy. Our calculations match Excel's PMT function and are verified against banking industry standards. We use the same formulas that banks and financial institutions use for loan calculations.
PayOff works with any type of debt including credit cards, personal loans, auto loans, student loans, mortgages, and home equity loans. As long as you have the balance, interest rate, and term, you can calculate payoff scenarios.
Extra payments go directly toward the principal balance, reducing the amount of interest you pay over time. Even small extra payments (like $25/month) can dramatically reduce your payoff time by years.
Absolutely! PayOff operates entirely in your browser - no data is sent to our servers. All calculations happen locally on your device. We don't collect, store, or transmit any of your financial information.
APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs. For most calculations, use your APR for more accurate results. If you only have the interest rate, the calculations will still be very close.
PayOff calculates the payment needed to pay off your debt within the specified term. If the payment seems high, try extending the loan term or consider making extra payments to reduce interest over time.
Generally yes! This is called the "avalanche method." Focus extra payments on debts with the highest interest rates first to minimize total interest paid. Use PayOff to calculate each debt separately and prioritize accordingly.
For variable-rate debts (like some credit cards), recalculate when rates change. PayOff assumes a fixed rate throughout the loan term. For planning purposes, you might want to test scenarios with slightly higher rates.
Yes! PayOff is completely free with no hidden fees, subscriptions, or premium versions. We believe everyone deserves access to quality financial planning tools to achieve debt freedom.
The time to pay off debt depends on your balance, interest rate, and monthly payment. With PayOff's calculator, you can see exactly how long it will take with your current payment plan and how much faster you can pay it off with extra payments.
The fastest way to pay off debt is to make extra payments toward the principal. Focus on high-interest debt first (debt avalanche method) and use any windfalls like tax refunds or bonuses to pay down balances faster.
Paying extra on your loan can save thousands in interest and help you become debt-free years earlier. Even an extra $25-50 per month makes a significant difference over time. Use PayOff to see your exact savings.
Use our free calculator to see exactly how much you can save and how fast you can eliminate your debt.
Calculate My Debt PayoffFocus extra payments on debts with the highest interest rates (like credit cards at 20%+) to minimize total interest paid over time. This is called the "avalanche method."
Split your monthly payment in half and pay every two weeks. You'll make 26 payments per year (equivalent to 13 monthly payments) and cut years off your payoff time.
Apply tax refunds, bonuses, and other unexpected income directly to your debt principal for maximum impact. Even small amounts make a big difference over time.
Round your payments up to the nearest $50 or $100. For example, if your payment is $247, pay $250 or $300. This simple trick adds extra principal with minimal effort.
Make a complete list of all debts with balances, interest rates, and minimum payments. This gives you a clear picture and helps you prioritize which debts to attack first.
Set up automatic extra payments to remove temptation to spend that money elsewhere. Even an extra $25/month automatically adds up to $300/year in additional payments.
Snowball: Pay minimums on all debts, then attack the smallest balance first. Great for motivation.
Avalanche: Pay minimums on all debts, then attack the highest interest rate first. Saves the most money.
Set up mobile banking alerts, use budgeting apps, and automate payments. Technology removes friction and keeps you on track with minimal effort.
Every extra dollar paid goes directly to principal, reducing future interest charges. A $100 extra payment on a 20% APR debt saves $20 per year in interest.
Acknowledge progress by celebrating when you pay off each debt or reach 25%, 50%, and 75% completion. Small rewards keep you motivated long-term.