See how extra payments accelerate your debt-free date and save you thousands in interest. Our free 2026 calculator works for mortgages, auto loans, student loans, and credit cards.
Calculate Payoff$103,358
Avg Household Debt
$23,792
Avg Auto Loan
$37,574
Avg Student Loan
$6,501
Avg Credit Card
Every dollar you pay above your minimum payment goes directly toward your principal balance—the amount that accrues interest. This creates a compounding effect in your favor: as your balance drops faster, less interest accrues each month, leaving more of each payment for principal reduction.
According to the Federal Reserve, the average American household carries over $103,000 in debt. The Consumer Financial Protection Bureau (CFPB) reports that most borrowers dramatically underestimate how much they'll pay in interest over a loan's lifetime—often 50% or more of the original principal on long-term loans.
Even small extra payments make a significant difference. Adding just $50/month to a $25,000 auto loan at 7% saves over $400 in interest and pays off the loan 5 months early. On a $300,000 mortgage, $200/month extra saves approximately $100,000 in interest and cuts 8 years off the loan.
Pay highest-interest debt first. Mathematically optimal—saves the most money over time.
Pay smallest balance first. Quick wins build momentum and motivation to continue.
Pay half every 2 weeks = 13 full payments/year. Cuts years off mortgages.
Pro Tip: The best strategy is the one you'll stick with. If quick wins motivate you, use snowball; if math matters most, use avalanche.
Personal Loan
12.5%
5-year avg term
Auto Loan
7%
5-year avg term
Student Loan
6.5%
10-year avg term
Mortgage
7%
30-year avg term
Credit Card
24%
Revolving
See exactly how much you can save by making extra payments. Calculate your new payoff date.
Calculate Payoff