How it works
Each month interest is added to your balance and your payment is subtracted. We repeat until the balance reaches zero.
Formula
n = −log(1 − rB ÷ P) ÷ log(1 + r)
Example
$15,000 at 12% APR with $400/month takes 48 months and about $3,890 in interest.
Assumptions & limitations
- Fixed rate and on-time payments.
- Excludes origination fees, late fees and penalties unless entered.
Frequently asked questions
Avalanche or snowball?
Avalanche (highest rate first) saves the most interest. Snowball (smallest balance first) gives quicker wins that help some people stay motivated.