Debt Payoff Calculator

See exactly how long it takes to pay off your debt — and how much you’d save with consolidation or settlement versus making minimum payments.

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Calculate Your Debt Payoff

Enter your numbers below — results appear instantly.

Total Debt Balance

Average Interest Rate

Current Monthly Payment

Consolidation Loan Rate

Your Debt Payoff Results

Minimum Payments

—

to pay off

Total paid: — Interest paid: —

Debt Consolidation

—

to pay off

Monthly payment: — Total paid: — Interest paid: —

Max Savings

Debt Settlement

—

to resolve

Settled amount: — Program fees: — Total out of pocket: —

Potential savings vs. minimum payments

—

with debt settlement

💡 Our Recommendation

—

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How the Calculator Works

Minimum Payments

We calculate how long it takes paying only the minimum (2% of balance or $25, whichever is more) at your current interest rate.

Debt Consolidation

We use your entered consolidation rate on a 48-month loan to show your new payment, total cost, and interest savings.

Debt Settlement

We model a 50% balance reduction over 36 months, including a 20% program fee, to show total out-of-pocket cost.

Calculator Assumptions & Disclaimers

This calculator is for educational purposes and uses simplified assumptions. Minimum payments are calculated as 2% of the balance or $25/month (whichever is greater), a common credit card minimum structure. Consolidation assumes a fixed 48-month personal loan at your entered rate. Settlement assumes 50% balance reduction, 20% program fees, and a 36-month program — actual results vary based on creditor negotiations.

Results do not account for taxes on forgiven debt, credit score impacts, or individual creditor policies. Consult a licensed debt relief professional for personalized advice.

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Frequently Asked Questions

Why does minimum payment take so long? +

Because minimum payments are typically 2% of your balance, and at high interest rates (18–29% APR), most of that goes to interest — barely touching the principal. A $20,000 balance at 22% APR paying only minimums can take over 30 years and cost more in interest than the original debt itself.

Is debt settlement really cheaper than consolidation? +

In raw dollars out of pocket, often yes — but the comparison isn’t simple. Settlement comes with significant credit score damage, potential tax liability on forgiven amounts, and program fees of 15–25%. Consolidation costs more in total repayment but keeps your credit intact. The “cheaper” option depends on your priorities and financial situation.

What interest rate should I enter for consolidation? +

If you have good credit (700+), personal loan rates typically range from 8–15%. Fair credit (620–699) usually qualifies for 15–24%. Below 620, consolidation loans are harder to get and rates may be similar to your current debt. If you’re unsure, try 12% as a baseline — it’s a realistic rate for many borrowers.

Does this calculator work for all types of debt? +

It works best for unsecured debt — credit cards, personal loans, medical bills, and similar. Debt settlement programs typically don’t handle secured debt (mortgages, auto loans) or student loans. For those debt types, different repayment options apply.