How is interest applied?

Monthly, as annual rate ÷ 12, on the remaining balance. Fees and changing rates are ignored.

What if the payment is too small?

If it never covers the interest, the page says the balance would not fall.

No. Lenders round differently. Treat it as an estimate.

Debt Payoff Calculator

Estimate when a debt is paid off, and how extra payments change the interest.

A single debt, paid at the same amount each month. Interest is applied monthly. This is an estimate, not financial advice — lenders round differently, and fees are ignored.

Balance

AUD

Interest rate

% p.a.

Minimum payment

AUD

Extra payment

AUD

Payoff

April 2029

30 months, paying $340.00 a month. Interest $1,941.49, total repaid $9,941.49.

Months

Interest

$1,941.49

Total repaid

$9,941.49

Without the extra $100.00 each month, payoff would be September 2030 and interest about $3,173.77 — 17 extra months.

Calculations happen in your browser.

Worked example

An $8,000 balance at 18% with a $240 minimum takes much longer than the same debt with an extra $100 a month. The extra payment cuts months and interest.

FAQ

How is interest applied?: Monthly, as annual rate ÷ 12, on the remaining balance. Fees and changing rates are ignored.
What if the payment is too small?: If it never covers the interest, the page says the balance would not fall.
Is this advice?: No. Lenders round differently. Treat it as an estimate.